The comparative balance sheets for Novak Company as of December 31 are as follows. Additional information: 1. Operating expenses include depreciation expense of $40,320 ( $19,200 of depreciation expense for buildings and $21,120 for equipment). 2. Land was sold for cash at book value. 3. Cash dividends of $11,520 were declared and paid. 4. Net income for 2025 was $35,520. 5. Equipment was purchased for $88,320cash. In addition, equipment costing $21,120 with a book value of $9,600 was sold for $7,680 cash. 6. 38,400 shares of $1 par value common stock were issued in exchange for land with a fair value of $38,400. Cash Flows from Operating Activities Payment of Cash Dividends (11520) Net Cash Provided by Financing Activities eTextbook and Media Save for Later Last saved 14 minutes ago. Attempts: 0 of 3 used NOVAK COMPANY Statement of Cash Flows - Indirect Method For the Year Ended Dectmber 31, 2025 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : \begin{tabular}{|l|r|} \hline Depreciation Expense & $0320 \\ \hline Sale of Equipment & 1920 \\ \hline Increase in Inventory & (9072) \\ \hline Decrease in Accounts Receivable & 7680 \\ \hline Decrease in Prepaid Expenses & \\ \hline Increase in Accounts Payable & 5491 \\ \hline \end{tabular} Cash Flows from Investing Activities Purchase of Equipment (88320) Sale of Equipment Sale of Land 24000 Net Cash Used by Investing Activities (56640) Cash Flows from Operating Activities Payment of Cash Dividends Net Cash Provided by Financing Activities (11520) The comparative balance sheets for Novak Company as of December 31 are as follows. Additional information: 1. Operating expenses include depreciation expense of $40,320 ( $19,200 of depreciation expense for buildings and $21,120 for equipment). 2. Land was sold for cash at book value. 3. Cash dividends of $11,520 were declared and paid. 4. Net income for 2025 was $35,520. 5. Equipment was purchased for $88,320cash. In addition, equipment costing $21,120 with a book value of $9,600 was sold for $7,680 cash. 6. 38,400 shares of $1 par value common stock were issued in exchange for land with a fair value of $38,400. Cash Flows from Operating Activities Payment of Cash Dividends (11520) Net Cash Provided by Financing Activities eTextbook and Media Save for Later Last saved 14 minutes ago. Attempts: 0 of 3 used NOVAK COMPANY Statement of Cash Flows - Indirect Method For the Year Ended Dectmber 31, 2025 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : \begin{tabular}{|l|r|} \hline Depreciation Expense & $0320 \\ \hline Sale of Equipment & 1920 \\ \hline Increase in Inventory & (9072) \\ \hline Decrease in Accounts Receivable & 7680 \\ \hline Decrease in Prepaid Expenses & \\ \hline Increase in Accounts Payable & 5491 \\ \hline \end{tabular} Cash Flows from Investing Activities Purchase of Equipment (88320) Sale of Equipment Sale of Land 24000 Net Cash Used by Investing Activities (56640) Cash Flows from Operating Activities Payment of Cash Dividends Net Cash Provided by Financing Activities (11520)
