Condensed financial data of Novak Corp follow Novak Corp Com

Condensed financial data of Novak Corp. follow Novak Corp. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total 2017 2016 $ 110,696 120,286 154,125 38,908 189,060 390,450 $66,308 52,060 140,905 35,620 149,330 332,225 (68,500) (71,240) $935,02!5 $705,208 Liabilities and Stockholders\' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 139,740 22,605 150,700 301,400 320,580 $935,025 $92,201 28,770 200,020 239,750 144,467 $705,208 Novak Corp. Income Statement Data For the Year Ended December 31, 2017 Sales revenue $532,190 Less Cost of goods sold $185,580

Solution

Cash flow Statement Cash flows from Operating activities: Net income for the peirod 211774 Adjustment required for reconciliation Depreciation 63705 loss on disposal of plant 10275 Increase in Account receivable -68226 Increase in Inventory -13220 Increase in prepaid expense -3288 Increase in account payable 47539 Decrease in Accrued expense -6165 Net cash provided from Operating activities 242394 Cash flows from Investing activities: Purchase of Plant -137000 Sale of plant 2055 Purchase of long term investment -39730 Net cashh used in investing activities -174675 Cash flows from Financing activities: Bonds payable repaid -49320 Issue of shares 61650 Dividend paid -35661 Net cash used in financing activities -23331 Net increase in cash 44388 Add: Beginning Balance in cash 66308 Ending balance in cash 110696