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13-8A Prepare a statement of cash flows - direct method. and compute free cash flow. NOSKER COMPANY Comparative Balance Sheet December 31 Assets 2015 2014 Cash $38,000 $20,000 Accounts Receivable 30,000 14,000 Inventory 27,000 20,000 Equipment 60,000 78,000 Accumulated depreciation--equipment (29,000) (24,000) Total $126,000 $108,000 l'l'l'l' l5 II II 'E 'l Accounts payable $24,000 $15,000 Income taxes payable 7,000 8,000 Bonds payable 27,000 33,000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 Total $126,000 $108,000 NOSKER COMPANY Income Statement For the Year ended December 31, 2015 Sales revenue $242,000 Cost of goods sold 175,000 Gross prot 67,000 Operating expenses 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $32,000 dditional data: 1. Dividends declared and paid were $20,000. 2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense, $14,500, is in the operating expenses. . All sales and purchases are on account. Data for Nosker Company is presented above. Further anlaysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. Instructions (a) Preapare a statement of cash ows using the direct method. (b) Compute free cash ow. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells IA