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Additional data: 1. Dividends declared and paid were $25,400. 2. During the year, equipment was sold for $8,700 cash. This equipment cost $18,200 originally and
Additional data:
1. | Dividends declared and paid were $25,400. | |
2. | During the year, equipment was sold for $8,700 cash. This equipment cost $18,200 originally and had a book value of $8,700 at the time of sale. | |
3. | All depreciation expense, $15,600, is in the operating expenses. | |
4. | All sales and purchases are on account. |
Further analysis reveals the following.
1. | Accounts payable pertain to merchandise suppliers. | |
2. | All operating expenses except for depreciation were paid in cash. |
Prepare a statement of cash flows for Nosker Company using the direct method
The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Total $36,400 33,000 31,000 59,400 (29,800) $130,000 $19,600 19,200 20,400 77,600 (23,700) $113,100 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,700 7,100 26,300 18,200 49,700 $130,000 $ 16,100 8,000 32,500 13,600 42,900 $113,100 Total NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations $242,100 175,500 66,600 23,900 42,700 2,400 40,300 8,100 $32,200 Interest expense Income before income taxes Income tax expense Net income Cash Flows from Operating Activities Cash Receipts from Customers 227800 Less cash payments: X x X Sale of Bonds Decrease in Accounts Receivable For Interest Increase in Inventory Redemption of Bonds To Suppliers Sale of Equipment Purchase of Equipment Issuance of Common Stock Decrease in Inventory Increase in Income Taxes Payable Increase in Accounts Payalbe Payment of Dividends Increase in Accounts Receivable Decrease in Accounts Payalbe Decrease in Income Taxes Payable For Operating Expenses Cash Receipts from Customers For Income TaxesStep by Step Solution
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