Problem 12-5A Novak Corp.\'s income statement contained the condensed informatio
ID: 2584280 • Letter: P
Question
Problem 12-5A Novak Corp.'s income statement contained the condensed information below Novak Corp. Income Statement For the Year Ended December 31, 2017 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $1,231,900 $779,780 69,850 20,320 869,950 361,950 71,120 $290,830 Novak Corp.'s balance sheet contained the comparative data at December 31. 2017 2016 Accounts payable Income taxes payable $88,900 52,070 16,510 $76,200 40,640 8,890 Accounts payable pertain to operating expenses.Explanation / Answer
Income before Income taxes 361,950
Adjustments for-
Add- Depreciation 69,850
Loss on sale of assets 20,320
Operating Profit before working capital changes 452,120
Increase in accounts receivables (12,700)
Increase in account payables 11,430
Operating profit 450,850
Less - Taxes paid (71,120)
Net cash generated from operating activities 379,730