NOSKER COMPANY Comparative Balance Sheet December 31 Assets Cash Accounts Receivable Inventory Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable 9 Income taxes payable 0 Bonds payable Common stock Retained earnings Total 22 25 27 NOSKER COMPANY Income Statement 2020 2019 $38,000 $20,000 30,000 14,000 27,000 20,000 60,000 78,000 -29,000 -24,000 $126,000 $108,000 $24,000 $15,000 7,000 8,000 27,000 33,000 18,000 14,000 50,000 38,000 $126.000 $108,000 For the Year ended December 31, 2020 Sales revenue Cost of goods sold Gross profit 29 Income from operations Operating expenses Interest expense Income before income taxes 36 36 Income tax expense 97 Net income 28 Additional data: $242,000 175.000 67,000 24.000 43.000 3.000 40.000 8.000 $32,000 01. Dividends declared and paid were $20,000. 42 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. 4 3. All depreciation expense. $14,500, is in the operating expenses 4 All sales and purchases are on account Instructions a Prepare a statement of cash flows using the indirect method (D) Compute free cash flow