Condensed financial data of Novak Corp. follow. Novak Corp. Comparative Balance
ID: 2539208 • Letter: C
Question
Condensed financial data of Novak Corp. follow.
Novak Corp.
Comparative Balance Sheets
December 31
Assets
2017
2016
$ 110,696
$ 66,308
120,286
52,060
154,125
140,905
38,908
35,620
189,060
149,330
390,450
332,225
(68,500
)
(71,240
)
$935,025
$705,208
Liabilities and Stockholders’ Equity
$ 139,740
$ 92,201
22,605
28,770
150,700
200,020
301,400
239,750
320,580
144,467
$935,025
$705,208
Novak Corp.
Income Statement Data
For the Year Ended December 31, 2017
$532,190
$185,580
17,002
63,705
37,374
6,480
10,275
320,416
$ 211,774
Additional information:
Prepare a statement of cash flows 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 Corp.
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash$ 110,696
$ 66,308
Accounts receivable120,286
52,060
Inventory154,125
140,905
Prepaid expenses38,908
35,620
Long-term investments189,060
149,330
Plant assets390,450
332,225
Accumulated depreciation(68,500
)
(71,240
)
Total$935,025
$705,208
Liabilities and Stockholders’ Equity
Accounts payable$ 139,740
$ 92,201
Accrued expenses payable22,605
28,770
Bonds payable150,700
200,020
Common stock301,400
239,750
Retained earnings320,580
144,467
Total$935,025
$705,208
Explanation / Answer
Answer:-
Novak Corp. Statement of Cash Flow (Using Indirect Method) For the year ended December 31 Particulars Amount $ Cash flow from opreating activities Net Income 211774 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 63705 Loss on disposal of plant assets 10275 Change in opreating assets & liabilities Increase in Accounts Receiviable -68226 Increase in Inventory -13220 Increase in Prepaid expenses -3288 Increase in Accounts payable 47539 Decrease in Accrued expense payable -6165 Net cash flow from opreating activities (a) 242394 Cash Flow from Financing activities Issue of common stock 61650 Repayment of bonds -49320 Cash dividend paid -35661 Net cash Flow from Financing activities (b) -23331 Cash Flow from Investing activities Purchase of New plant assets -137000 Sale of old plant assets 2055 Purchase of Long term investments -39730 Net cash Flow from Investing activities (c) -174675 Net Channge in cash c=a+b+c 44388 Beginning cash balance 66308 Closing cash balance 110696Related Questions
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