Problem 13-7A (Part Level Submission) Presented below are the financial statements of Nosker Company NOSKER COMPANY Comparative Balance Sheets Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2015 $34,500 32,900 26,070 59,880 (29,520 ) 2014 $20,830 18,050 20,040 77,650 (23,380) $123,830 $113,190 Total iabilities and Stockholders' Equit Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,010 7,420 27,010 18,640 42,750 $123,830 $ 16,620 8,190 32,380 14,460 41,540 $113,190 Total NOSKER COMPANY Income Statement For the Year Ended December 31, 2015 Sales revenue $242,850 175,610 Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 67,240 23,970 43,270 2,950 40,320 7,050 $33,270 Additional data: 1. Dividends declared and paid were $32,060 2. During the year equipment was sold for $8,480 cash. This equipment cost $17,770 originally and had a book value of $8,480 at the time o 3. All depreciation expense, $15,430, is in the operating expenses 4. All sales and purchases are on account Your answer is correct. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 (15,000).) NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities Net Income 33,270 Net Cash Provided by Operating Activities Depreciation Expense 15,430 Increase in Accounts Receivable -14,850 Increase in Inventory 6030 Increase in Accounts Payable 11,390 Decrease in Income Taxes Payable -770 5,170 Net Cash Provided by Operating Activities 38,440 Cash Flows from Investing Activities Sale of Equipment 8,480 Cash Flows from Financing Activities Payment of Dividends -32,060 Redemption of Bonds 5,370 Issuance of Common Stock 4,180 Net Cash used by Financing Activities -33,250 Net Increase in Cash 13,670 20,830 34,500 Cash at Beginning of Period Cash at End of Period SHOW SOLUTION SHOW ANSWER (b) Your answer is incorrect. Try again. Compute free cash flow. Free cash flow 170,250