A comparative statement of financial position for Novak Industries Inc. follows:

NOVAK INDUSTRIES INC. Statement of Financial Position December 31, 2020
	December 31
Assets	2020			2019
Cash	$ 21,200			$ 34,200
Accounts receivable	122,000			55,400
Inventory	225,000			194,000
Land	90,000			128,000
Equipment	263,000			203,000
Accumulated depreciation—equipment	( 69,200	)		( 42,900	)
Total	$ 652,000			$ 571,700
Liabilities and Shareholders’ Equity
Accounts payable	$ 53,800			$ 59,500
Bonds payable	168,600			209,600
Common shares	220,000			179,000
Retained earnings	209,600			123,600
Total	$ 652,000			$ 571,700

Additional information:

1.		Net income for the fiscal year ending December 31, 2020, was $ 147,000.
2.		Cash dividends of $ 61,000 were declared and paid. Dividends paid are treated as financing activities.
3.		Bonds payable amounting to $ 41,000 were retired through issuance of common shares.
4.		Land was sold at a gain of $ 6,000.
5.		No equipment was sold during the year.

(a)

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

During the year, Novak retired $  in bonds payable by issuing common shares.

Answer rating: 100% (QA)

Statement of cash flows of NOVAK Industries Inc for the year ended 31 December2020 ... View the full answer