Question

Exercise 12-17

The following information is available for Novak Corp. for 2022.

Cash used to purchase treasury stock		$ 126,984
Cash dividends paid		57,552
Cash paid for interest		59,136
Net income		1,225,752
Sales revenue		2,117,280
Cash paid for taxes		261,360
Cash received from customers		1,494,504
Cash received from sale of building (at book value)		521,664
Cash paid for operating expenses		203,280
Beginning cash balance		29,040
Cash paid for goods and services		736,824
Cash received from issuing common stock		937,200
Cash paid to redeem bonds at maturity		528,000
Cash paid to purchase equipment		298,848

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections 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—Direct Method 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     Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building		$Enter a dollar amount
Select between addition and deduction AddLess : Select an opening subsection name Cash Paid to Redeem Bonds at MaturityCash PaymentsCash Receipts from CustomersFor Goods and ServicesFor Income TaxesFor InterestFor Operating ExpensesIssuance of Common StockPayment of Cash DividendPurchase of EquipmentPurchase Treasury StockSale of Building
Select an item     Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building	$Enter a dollar amount
Select an item     Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building	Enter a dollar amount
	Enter a dollar amount
		Enter a total amount for this subsection
		Enter a total amount for section one
	Enter a dollar amount
		Enter a total amount for section three
		Enter a total amount for three sections
Select an item 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		Enter a dollar amount
Select a closing name for this statement 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		$Enter a total of the two previous amounts

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Answer 1

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Novak
Cashflow statement- Direct method	Amount $	Amount $
Particulars
Cash flow from operating activities
Cash Received from customers		1,494,504.00
Less: Cash Payments
Cash paid for goods and services	736,824.00
Cash paid for operating expenses	203,280.00
Cash paid for interest	59,136.00
Cash paid for taxes	261,360.00	1,260,600.00
Net cash provided by operating activities		233,904.00
Cash flow from investing activities
Cash received from sale of building (at book value)	521,664.00
Cash paid to purchase equipment	(298,848.00)
Net cash used provided by investing activities		222,816.00
Cash flow from financing activities
Cash used to purchase treasury stock	(126,984.00)
Cash received from issuing common stock	937,200.00
Cash paid to redeem bonds at maturity	(528,000.00)
Cash dividends paid	(57,552.00)
Net cash provided by financing activities		224,664.00
Net Increase/(Decrease) in cash		681,384.00
Cash Balance, beginning		29,040.00
Cash Balance, ending		710,424.00