Problem 12-07A Presented below are the financial statements of Novak Company Novak Company Comparative Balance Sheets December 31 Assets 2022 Cash $ 112,000 Accounts receivable 64,000 Inventory 89,600 Property, plant, and equipment 192,000 Accumulated depreciation (102,400 ) Total $355,200 2021 $ 64,000 44,800 64,000 249,600 (76,800 ) $345,600 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 60,800 22,400 54,400 57,600 160,000 $355,200 $ 48,000 25,600 105,600 44,800 121,600 $345,600 $774,400 560,000 214,400 Novak Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $57,600 Administrative expenses 19,200 Income from operations Interest expense Income before income taxes 76,800 137,600 9.600 128,000 25,600 $ 102,400 Income tax expense Net income Additional data: 1. Depreciation expense was $56,000. 2. Dividends declared and paid were $64,000. 3. During the year equipment was sold for $27,200 cash. This equipment cost $57,600 originally and had accumulated depreciation of $30,400 at the time of sale. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities 7 Cash Recipes from customers 7 V ans Payment For Operatine Expenses Sus Force Forest Co by Gin Ali y Cash Flows from investing Activit Salomon 15100 Cash Flows from Francine Activities Common Stock P ront of Dividende C o ng Activ NOC LINK TO TEXT Computers flow. (Show a negative free cash flow with writer Frus cash flow 42600