The income statement of Novak Company is shown below.

NOVAK COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue				$7,030,000
Cost of goods sold
Beginning inventory		$1,950,000
Purchases		4,600,000
Goods available for sale		6,550,000
Ending inventory		1,680,000
Cost of goods sold				4,870,000
Gross profit				2,160,000
Operating expenses
Selling expenses		500,000
Administrative expenses		640,000		1,140,000
Net income				$1,020,000

Additional information:

1.		Accounts receivable decreased $330,000 during the year.
2.		Prepaid expenses increased $160,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $270,000 during the year.
4.		Accrued expenses payable decreased $120,000 during the year.
5.		Administrative expenses include depreciation expense of $60,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Novak Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

NOVAK COMPANY Statement of Cash Flows (Partial) choose the accounting period December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
select an opening section name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an item Decrease in Prepaid ExpensesDecrease in Accounts ReceivableDecrease in Accounts PayableIncrease in InventoryIncrease in Accounts ReceivableIncrease in Accounts PayableDecrease in InventoryNet IncomeIncrease in Prepaid ExpensesDepreciation expenseIncrease in Accrued Expenses PayableDecrease in Accrued Expenses Payable		$enter a dollar amount
Adjustments to reconcile net income to
select a subsection name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an item Decrease in Accounts PayableDecrease in InventoryIncrease in Accounts PayableIncrease in Accrued Expenses PayableDepreciation expenseIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in InventoryNet IncomeDecrease in Prepaid ExpensesIncrease in Prepaid ExpensesDecrease in Accrued Expenses Payable	$enter a dollar amount
select an item Decrease in Accrued Expenses PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in Accounts PayableDepreciation expenseIncrease in InventoryDecrease in Prepaid ExpensesNet IncomeDecrease in Accounts PayableIncrease in Prepaid ExpensesDecrease in InventoryDecrease in Accounts Receivable	enter a dollar amount
select an item Decrease in Accounts PayableDecrease in Accrued Expenses PayableNet IncomeDecrease in Prepaid ExpensesIncrease in Accounts PayableIncrease in Prepaid ExpensesIncrease in Accounts ReceivableIncrease in InventoryIncrease in Accrued Expenses PayableDecrease in InventoryDecrease in Accounts ReceivableDepreciation expense	enter a dollar amount
select an item Depreciation expenseDecrease in InventoryDecrease in Prepaid ExpensesIncrease in Accounts ReceivableNet IncomeDecrease in Accrued Expenses PayableDecrease in Accounts PayableDecrease in Accounts ReceivableIncrease in Prepaid ExpensesIncrease in InventoryIncrease in Accounts PayableIncrease in Accrued Expenses Payable	enter a dollar amount
select an item Increase in Accounts ReceivableDecrease in Accrued Expenses PayableDepreciation expenseIncrease in Accounts PayableIncrease in Accrued Expenses PayableDecrease in InventoryIncrease in InventoryDecrease in Accounts PayableNet IncomeDecrease in Accounts ReceivableDecrease in Prepaid ExpensesIncrease in Prepaid Expenses	enter a dollar amount
select an item Increase in Accounts PayableIncrease in Prepaid ExpensesDecrease in Accrued Expenses PayableDepreciation expenseIncrease in Accrued Expenses PayableNet IncomeDecrease in Prepaid ExpensesIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in InventoryDecrease in Accounts PayableDecrease in Inventory	enter a dollar amount
		enter a subtotal of the adjustments
select a closing section name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		$enter a total amount for the section