repare a statement of cash flows for 2022 using the indirect method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shown below are comparative balance sheets for Novak Company.

Novak Company
Comparative Balance Sheets
December 31
Assets
 
2022
   
2021
 
Cash
 
$ 122,400
   
$ 39,600
 
Accounts receivable
 
158,400
   
136,800
 
Inventory
 
300,600
   
340,200
 
Land
 
144,000
   
180,000
 
Equipment
 
468,000
   
360,000
 
Accumulated depreciation—equipment
 
(118,800
)
 
(57,600
)
Total
 
$1,074,600
 
 
$999,000
 
Liabilities and Stockholders’ Equity
           
Accounts payable
 
$ 70,200
   
$ 77,400
 
Bonds payable
 
270,000
   
360,000
 
Common stock ($1 par)
 
388,800
   
313,200
 
Retained earnings
 
345,600
 
 
248,400
 
Total
 
$1,074,600
 
 
$999,000
 


Additional information:

1.   Net income for 2022 was $167,400.
2.   Depreciation expense was $61,200.
3.   Cash dividends of $70,200 were declared and paid.
4.   Bonds payable amounting to $90,000 were redeemed for cash $90,000.
5.   Common stock was issued for $75,600 cash.
6.   No equipment was sold during 2022.
7.   Land was sold for its book value.


Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).

Novak Company
Statement of Cash Flows
Choose the accounting period                                                           December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022
Select an opening name for section one                                                           Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
   
Select an item                                                           Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockNet IncomePayment of Cash DividendsPurchase of EquipmentRedemption of BondsSale of Land
 
$Enter a dollar amount 
Adjustments to reconcile net income to
   
Select an opening name for subsection                                                           Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
   
Select an item                                                           Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockNet IncomePayment of Cash DividendsPurchase of EquipmentRedemption of BondsSale of Land
$Enter a dollar amount 
 
Select an item
Enter a dollar amount
 
Select an item
Enter a dollar amount
 
Select an item
Enter a dollar amount
 
   
Enter a total amount for this subsection
   
Enter a total amount for section one
     
Select an opening name for section two 
   
Select an item                                                           Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockNet IncomePayment of Cash DividendsPurchase of EquipmentRedemption of BondsSale of Land
Enter a dollar amount
 
Select an item 
Enter a dollar amount
 
Select a closing name for section two
 
Enter a total amount for section two
     
Select an opening name for section three
   
Select an item                                                           Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockNet IncomePayment of Cash DividendsPurchase of EquipmentRedemption of BondsSale of Land
Enter a dollar amount
 
Select an item
Enter a dollar amount
 
Select an item
Enter a dollar amount
 
Select a closing name for section three                                                         
 
Enter a total amount for section three
     
Select an item
 
Enter a total amount for three sections
Select an item
 
Enter a dollar amount
Select a closing name for this statement      
 
$Enter a total of the two previous amounts 
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