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Condensed financial data of Novak Corp. follow. Novak Corp. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 110,696 120,286 $ 66,308 52,060 Accounts receivable Inventory Prepaid expenses 154,125 38,908 189,060 140,905 35,620 149,330 Long-term investments Plant assets Accumulated depreciation 390,450 (68,500) $935,025 332,225 (71,240) $705,208 Total Liabilities and Stockholders' Equity Accounts payable $ 139,740 $92,201 Accrued expenses payable 22,605 150,700 28,770 200,020 Bonds payable Common stock 301,400 239,750 Retained earnings 320,580 144,467 Total $935,025 $705,208 Novak Corp. Income Statement Data For the Year Ended December 31, 2017 Sales revenue $532,190 Less: Cost of goods sold $185,580 Operating expenses, excluding depreciation 17,002 63,705 Depreciation expense Income tax expense 37,374 Interest expense 6,480 10,275 Loss on disposal of plant assets 320,416 Net income $ 211,774 Additional information: 1. New plant assets costing $137,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $78,775 and accumulated depreciation of $66,445 were sold for $2,055 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $35,661 was declared and paid during the year. Novak Corp. Statement of Cash Flows Adjustments to reconcile net income to

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