Problem 12-08A a-b

Compute cash flow for B

Problem 12-08A a-b (Part Level Submission) The following are the financial statements of Novak Corp.. 2019 Novak Corp. Comparative Balance Sheets December 31 Assets 2020 Cash $36,400 Accounts receivable 32,500 Inventory 30,900 Equipment 59,900 Accumulated depreciation equipment (29,800) Total $129,900 $19,600 19,000 21,000 77,400 (24,000) $113,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $29,000 7,400 26,700 18,900 47,900 $129,900 $ 16,000 8,000 32,300 14,200 42,500 $113,000 Novak Corp Income Statement For the Year Ended December 31, 2020 Sales revenue $241,300 Cost of goods sold 176,300 Gross profit 65,000 Operating expenses 25,000 Income from operations 40,000 Interest expense 3,900 Income before income taxes 36,100 Income tax expense 7,400 Net income $28,700 Additional data: 1. Dividends declared and paid were $23,300. 2. During the year, equipment was sold for $8,800 cash. This equipment cost $17,500 originally and had a book value of $8,800 at the time of sale. 3. All depreciation expense, $14,500, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. Prepare a statement of cash flows for Novak Corp. using the direct method. (Show amounts that decrease cas Novak Corp. Statement of Cash Flows Cash Flows from Operating Activities cash payments