Problem 13-7A (Part Level Submission)

The following are the financial statements of Nosker Company.

(a)

(b) Compute free cash flow.

The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 016 35,250 19,700 18,050 Accounts receivable 32,500 Inventory 26,050 21,000 Equipment 59,450 77,950 Accumulated depreciation-equipment 29,850 23,500 $123,400 $113,200 Total ilities an ckholders' E Accounts payable 28,200 16,500 Income taxes payable 7,200 8,200 27,000 33,800 Bonds payable Common stock 18,800 14,950 Retained earnings 42,200 39,750 $123,400 $113,200 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 $241,500 Sales revenue 176,250 Cost of goods sold Gross profit 65,250 24,100 Operating expenses 41,150 Income from operations 2,650 Interest expense 38,500 Income before income taxes 7,700 Income tax expense 30,800 Net income Additional data 1. Dividends declared and paid were $28,350. 2. During the year equipment was sold for $7,850 cash. This equipment cost $18,500 originally and had a book value of $10,650 at the time of sale. 3. All depreciation expense, $17,000, is in the operating expenses 4. All sales and purchases are on account. *(a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either g. (15,000). 15,000 or in parenthesis