Comparative Balance Sheets December 31 2019 2020 Assets $34,850 $20,350 Cash 32,850 18,050 Accounts receivable 26,300 20,000 Inventory 77,150 59,750 Equipment (29,600) (23,100) Accumulated depreciation-equipment $124,150 $112,450 Total Liabilities and Stockholders' Equity Accounts payable $28,750 $ 16,400 Income taxes payable 7,300 8,200 Bonds payable 27,900 32,900 Common stock 18,800 13,350 Retained earnings 41,400 41,600 Total $124,150 $112,450 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241,550 Cost of goods sold 176,050 Gross profit 65,500 Operating expenses 23,450 Income from operations 42,050 Total $124,150 $112,450 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241,550 Cost of goods sold 176,050 Gross profit 65,500 Operating expenses 23,450 Income from operations 42,050 Interest expense 2,650 Income before income taxes 39,400 Income tax expense 7,150 Net income $32,250 Additional data: 1. Dividends declared and paid were $32,450. 2. During the year, equipment was sold for $8,300 cash. This equipment cost $17,400 originally and had a book value of $8.300 at the time of sale. 3. All depreciation expense, $15,600, is in the operating expenses. 4. All sales and purchases are on account. (a) repare a statement of cash flows using the indirect method. (Show amounts that NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Increase in Accounts Receivable $ Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Depreciation Expense Net Cash Provided by Operating Activities 4H Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Issuance of Common Stock Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period