Exercise 12-5 The following information is available for Novak Corp. for the yea

Question

Exercise 12-5 The following information is available for Novak Corp. for the year ended December 31, 2017 Beginning cash balance Accounts payable decrease Depreciation expense Accounts receivable increase Inventory increase Net income Cash received for sale of land at book value Cash dividends paid Income taxes payable increase Cash used to purchase building Cash used to purchase treasury stock Cash received from issuing bonds $47,880 3,937 172,368 8,725 11,704 302,282 37,240 12,768 5,001 307,496 27,664 212,800 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. Statement of Cash Method

Explanation / Answer

Novak Corp Cash Flow Statement For the year ended December 31, 2017 Cash flows from operating activities Net Income $   302,282 Adjustment to reconcile net income to: Depreciation expense $   172,368 Decrease in accounts payable $      (3,937) Increase in accounts receivable $      (8,725) Increase in inventory $   (11,704) Increase in income tax payable $        5,001 $   153,003 Net cash provided by operating activities $   455,285 Cash flows from investing activities Proceeds from sale of land $      37,240 Purchase of building $ (307,496) Net cash used by investing activities $ (270,256) Cash flows from financing activities Proceeds from issue of bonds $   212,800 Cash paid for purchase of treasury stock $   (27,664) Dividend paid $   (12,768) Net cash provided by financing activities $   172,368 Net increase in cash and cash equivalents $   357,397 Cash and cash equivalents at beginning of period $      47,880 Cash and cash equivalents at end of period $   405,277

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.