Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help completing this question Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -

image text in transcribedimage text in transcribedimage text in transcribed

Need help completing this question

image text in transcribedimage text in transcribedimage text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

3rd edition

9781337909402, 978-1337788281

More Books

Students also viewed these Accounting questions

Question

Distinguish between apperception and perception.

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago