Problem 12-5A Novak Corp.\'s income statement contained the condensed informatio
ID: 2584319 • Letter: P
Question
Problem 12-5A Novak Corp.'s income statement contained the condensed information belovw 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 receivable 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
Statement of cash flows For the year ended December 31,2017 Cash Flows from Operating Activities Net Income 290830 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation expense 69850 Loss on disposal of plant assets 20320 Increase in Accounts Receivable -12700 Increase in Accounts Payable 11430 Increase in Income taxes payable 7620 96520 Net Cash Provided by Operating Activities 387350