B

Problem 17-08A The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash 537,400 $19,900 Accounts receivable 32,000 18,800 Inventory 30,400 20,200 Equipment 59,600 78,000 Accumulated depreciation-equipment (29,400) (24,000) Total $130,000 $112.900 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,300 7,000 27,900 18,700 48,100 $130,000 $ 16,200 8,500 33,500 14,000 40,700 $112.900 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,800 176,200 65,600 23,400 42.200 2,200 40,000 7,400 $32,600 Additional data: 1. Dividends declared and paid were $25,200. 2. During the year, equipment was sold for $9,500 cash. This equipment cost $18,400 originally and had a book value of $9,500 at the time of sale. 3. All depreciation expense, $14,300, 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 or cash flows for Nosker Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NOSKER COMPANY Statement of Cash Flows cash payments: