The balance sheets for Novak Company showed the following information. Additional information concerning transactions and events
during 2025 are presented below.
Balance Sheet
December 31
2025
2024
Cash
$67,980
$22,440
Accounts receivable (net)
95,260
44,660
Inventory
77,000
92,400
Long-term investments
0
33,000
Property, plant & equipment
520,300
330,000
Accumulated depreciation
(82,940)
(55,000)
$677,600
$467,500
Accounts payable
$37,400
$58,300
Accrued liabilities
46.200
37,400
Long-term notes payable
154,000
110,000
Common stock
286,000
198,000
Retained earnings
154,000
63,800
$677,600
$467,500
Additional data:
1.
Net income for the year 2025, $134,200.
2.
Depreciation on plant assets for the year, $27,940.
3.
Sold the long-term investments for $72,600 (assume gain or loss is ordinary).
4.
Paid dividends of $44,000.
5. Purchased machinery costing $58,300, paid cash.
6. Purchased machinery and gave a $132,000 long-term note payable.
7.
Paid a $88,000 long-term note payable by issuing common stock.
Prepare a statement of cash flows (using the indirect method) for 2025 for Novak Company. (Show amounts that decrease cash flow with
either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).)
