Question

6500 61500 View Policies Current Attempt in Progress The following information is available for Novak Corp. for the year ended December 31 2022 Beginning cash balance $36.000 Accounts payable increase 8.550 Depreciation expense Accounts receivable decrease 7200 Inventory decrease 4,650 Net income 85,800 Cash received for sale of land at book value 156,000 Cash dividends paid 57.000 Income taxes payable decrease 5.850 Cash used to purchase land 121.500 Cash used to redeem bonds 99.000 Cash received from issuing stock 240,000 Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with ether (15,0001) n es. 15.000 or in parenthesises Novak Corp. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to homewo

Answer 1

STATEMENT OF CASH FLOW - INDIRECT METHOD
	Amount in $	Amount in $
Net income		$             85,800
Cash flows from operating activities
Adjustments to reconcile net income to Operating Cash Flow
Depreciation Expenses	$             61,500
(Increase) / Decrease in Account receivables	$                7,200
Inventory Decrease / (Increase)	$                4,650
Accounts payable Increase / ( Decrese)	$                8,550
Income tax payable decreases	$              -5,850
		$             76,050
Net cash from operating activities		$          1,61,850
Cash flows from investing activities
Sale of Land	$          1,56,000
Purhcase of Land	$        -1,21,500
Net cash used in investing activities		$             34,500
Cash flows from Financing activities
Cash Dividend :Paid	$            -57,000
Cash Used to redeemed Bonds	$            -99,000
Issuing of Common Stock	$          2,40,000
Net cash used in financing activities		$             84,000
Net increase in cash and cash equivalents		$          2,80,350
Add :Cash and cash equivalents at beginning of period		$             36,000
Cash and cash equivalents at end of period		$          3,16,350