Problem 13-7A (Video) The following are the financial statements of Nosker Company. 2019 NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 Cash $34,450 Accounts receivable 32,650 Inventory 26,400 Equipment 59,550 Accumulated depreciation-equipment (29,000) Total $124,050 $20,700 18,100 20,250 77,650 (23,250) $113,450 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,600 7,350 27,800 19,000 41,300 $124,050 $ 16,150 8,500 33,600 13,050 42,150 $113,450 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $242,650 S NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense $242,650 176,650 66,000 24,400 41,600 3,850 37,750 8,900 $28,850 2 Net income Additional data: 1. Dividends declared and paid were $29,700. 2. During the year, equipment was sold for $7,700 cash. This equipment cost $18,100 originally and had a book value of $7,700 at the time of sale. 3. All depreciation expense, $16,150, is in the operating expenses. 4. All sales and purchases are on account. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign .g. -15,000 or in par NOSKER COMPANY Statement of Cash Flows Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with eith NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities 28850 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities > Depreciation Expense 16150 Increase in Accounts Receivable 14550 > 6150 Increase in Inventory Increase in Accounts Payable 12450 Decrease in Income Taxes Payable ! 1150 6750 6750 Net Cash Provided by Operating Activities 35600 Cash Flows from Investing Activities Sale of Equipment 7700 Net Cash Provided by Investing Activities 7700 Cash Flows from Financing Activities Issuance of Common Stock 5950 > Redemption of Bonds 5800 Payment of Dividends 27800 x Net Cash Used by Financing Activities 29550 Net Increase in Cash 13750