Novak Company had the following information available at the end of 2017
NOVAK COMPANY
COMPARATIVE BALANCE SHEETS
AS OF DECEMBER 31, 2017 and 2016
2017 2016
Cash $10,090 $ 3,980
Accounts receivable 20,320 12,920
Short - term investments 21,970 29,850
Inventory 41,660 34,950
Prepaid rent 3,020 11,990
Prepaid insider 2,100 90
Supplies 1,010 75
Land 123,940 175,430
Buildings 346,530 346,530
Accumulated depreciation-buildings (104,430) (87,260)
Eiquipment 527,070 402,150
Accumulated depreciation-equipment (131,260) (111,670)
Patents 44,900 50,370
Total assets $960,920 $869,405

Accounts payable $21,940 $32,020
Income taxes payable 5,030 3,960
Salarie and wages payable 5,000 2,980
Long-term notes payable 10,010 10,010
Bonds payable 59,560 70,180
Premium on bids payable 297,360 397,360
Common stock 21,860 25,065
Paid-in capital in excess of par-common stock 24,840 220,760
Retained earnings 123,430 89,600
Total and stockholders equity $906,920 $869.405

NOVAK COMPANY
INCOME STATEMENT AND DIVIDEND INFORMATION
FOR THE YEAR ENDED DECEMBER 32, 2017
Sales revenue $1,160,530
Cost of goods sold 747,740
412,790
Gross margin
Operation expenses
Selling expenses $78,510
Administrative expenses 155,480
Depreciation/Amartization expose 42,230
Total operating expenses 276,220
Income from operate 136,570
Other revenues/expenses
Gain on sale of land 8,080
Gain on sale of short-term investment 3,960
Dividend revenue 2,380
interest expense (51,950) (37,530)
Income before taxes 99,040
Income after expense 39,610
Net income 59,430
Dividends to common stockholders (25,600)
To retained earnings $33,830

Prepare a statement of cash flows for Novak Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (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).)