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Prepare a statement of cash flows using the indirect 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 for the Month Ended December 31, 2020 v Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities v Depreciation Expense Increase in Accounts Receivable Increase in Inventory Decrease in Accounts Payable Increase in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Operating Activities Cash Flows from Financing Activities Issuance of Bonds Payment of Dividends v vCompute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free Cash Flow SThe following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $34,850 $20,350 Accounts receivable 32,850 18,050 Inventory 26,300 20,000 Equipment 59,750 77,150 Accumulated depreciation-equipment (29,600) (23,100) Total $124,150 $112,450 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 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