The comparative balance sheets for Novak Corp. as of December 31 are as follows. Novak Corp. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $57,000 $49,000 Accounts receivable 42,400 64,000 Inventory 150,000 146,800 Prepaid expenses 14,300 21,600 Land 143,900 130,800 Buildings 198,400 198,400 Accumulated depreciation—buildings (60,800 ) (33,100 ) Equipment 229,000 156,400 Accumulated depreciation—equipment (42,800 ) (37,500 ) Total $731,400 $696,400 Liabilities and Stockholders’ Equity Accounts payable $46,400 $39,200 Bonds payable 260,000 260,000 Common stock, $1 par 190,800 157,700 Retained earnings 234,200 239,500 Total $731,400 $696,400 Additional information: 1. Operating expenses include depreciation expense of $42,000 ($27,700 of depreciation expense for buildings and $14,300 for equipment). 2. Land was sold for cash at book value. 3. Cash dividends of $50,100 were paid. 4. Net income for 2022 was $44,800. 5. Equipment was purchased for $94,400 cash. In addition, equipment costing $21,800 with a book value of $12,800 was sold for $6,200 cash. 6. 33,100 shares of $1 par value common stock were issued in exchange for land with a fair value of $33,100. Prepare a statement of cash flows for the year ended December 31, 2022, 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).) Prepare a statement of cash flows for the year ended December 31, 2022, 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 Flows choose the accounting period select an opening name for section one select a cashflow item $enter a dollar amount Adjustments to reconcile net income to select an opening subsection name select a cashflow item $enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount enter a total amount of the adjustments select a closing name for section one enter a total amount for section one select an opening name for section two select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow 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 a cashflow item enter a dollar amount select a cashflow item enter a total amount for three sections select a cashflow item enter a dollar amount select a cashflow item $enter a total of the two previous amounts select an opening name for section four select a cashflow item $enter a dollar amount

The comparative balance sheets for Novak Corp. as of December 31 are as follows. Novak Corp. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $57,000 $49,000 Accounts receivable 42,400 64,000 Inventory 150,000 146,800 Prepaid expenses 14,300 21,600 Land 143,900 130,800 Buildings 198,400 198,400 Accumulated depreciation—buildings (60,800 ) (33,100 ) Equipment 229,000 156,400 Accumulated depreciation—equipment (42,800 ) (37,500 ) Total $731,400 $696,400 Liabilities and Stockholders’ Equity Accounts payable $46,400 $39,200 Bonds payable 260,000 260,000 Common stock, $1 par 190,800 157,700 Retained earnings 234,200 239,500 Total $731,400 $696,400 Additional information: 1. Operating expenses include depreciation expense of $42,000 ($27,700 of depreciation expense for buildings and $14,300 for equipment). 2. Land was sold for cash at book value. 3. Cash dividends of $50,100 were paid. 4. Net income for 2022 was $44,800. 5. Equipment was purchased for $94,400 cash. In addition, equipment costing $21,800 with a book value of $12,800 was sold for $6,200 cash. 6. 33,100 shares of $1 par value common stock were issued in exchange for land with a fair value of $33,100. Prepare a statement of cash flows for the year ended December 31, 2022, 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).) Prepare a statement of cash flows for the year ended December 31, 2022, 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 Flows choose the accounting period select an opening name for section one select a cashflow item $enter a dollar amount Adjustments to reconcile net income to select an opening subsection name select a cashflow item $enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount enter a total amount of the adjustments select a closing name for section one enter a total amount for section one select an opening name for section two select a cashflow item enter a dollar amount select a cashflow item enter a dollar amount select a cashflow 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 a cashflow item enter a dollar amount select a cashflow item enter a total amount for three sections select a cashflow item enter a dollar amount select a cashflow item $enter a total of the two previous amounts select an opening name for section four select a cashflow item $enter a dollar amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The comparative balance sheets for Novak Corp. as of December 31 are as follows.

Novak Corp. Comparative Balance Sheets December 31
Assets	2022		2021
Cash	$57,000			$49,000
Accounts receivable	42,400			64,000
Inventory	150,000			146,800
Prepaid expenses	14,300			21,600
Land	143,900			130,800
Buildings	198,400			198,400
Accumulated depreciation—buildings	(60,800	)		(33,100	)
Equipment	229,000			156,400
Accumulated depreciation—equipment	(42,800	)		(37,500	)
Total	$731,400			$696,400
Liabilities and Stockholders’ Equity
Accounts payable	$46,400			$39,200
Bonds payable	260,000			260,000
Common stock, $1 par	190,800			157,700
Retained earnings	234,200			239,500
Total	$731,400			$696,400

Additional information:

1.		Operating expenses include depreciation expense of $42,000 ($27,700 of depreciation expense for buildings and $14,300 for equipment).
2.		Land was sold for cash at book value.
3.		Cash dividends of $50,100 were paid.
4.		Net income for 2022 was $44,800.
5.		Equipment was purchased for $94,400 cash. In addition, equipment costing $21,800 with a book value of $12,800 was sold for $6,200 cash.
6.		33,100 shares of $1 par value common stock were issued in exchange for land with a fair value of $33,100.

Prepare a statement of cash flows for the year ended December 31, 2022, 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).)

Prepare a statement of cash flows for the year ended December 31, 2022, 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 Flows choose the accounting period
select an opening name for section one
select a cashflow item		$enter a dollar amount
Adjustments to reconcile net income to
select an opening subsection name
select a cashflow item	$enter a dollar amount
select a cashflow item	enter a dollar amount
select a cashflow item	enter a dollar amount
select a cashflow item	enter a dollar amount
select a cashflow item	enter a dollar amount
select a cashflow item	enter a dollar amount
		enter a total amount of the adjustments
select a closing name for section one		enter a total amount for section one

select an opening name for section two
select a cashflow item	enter a dollar amount
select a cashflow item	enter a dollar amount
select a cashflow 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 a cashflow item		enter a dollar amount

select a cashflow item		enter a total amount for three sections
select a cashflow item		enter a dollar amount
select a cashflow item		$enter a total of the two previous amounts

select an opening name for section four
select a cashflow item		$enter a dollar amount

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