Problem 17-07A (Video) (Part Level Submission)

The following are the financial statements of Nosker Company.

NOSKER COMPANY Comparative Balance Sheets December 31
Assets		2020			2019
Cash		$34,600			$19,800
Accounts receivable		32,400			18,700
Inventory		26,000			20,500
Equipment		59,250			77,650
Accumulated depreciationequipment		(29,250	)		(23,450	)
Total		$123,000			$113,200
Liabilities and Stockholders Equity
Accounts payable		$28,000			$ 16,350
Income taxes payable		7,100			8,000
Bonds payable		27,700			32,500
Common stock		17,400			14,950
Retained earnings		42,800			41,400
Total		$123,000			$113,200

NOSKER COMPANY Income Statement For the Year Ended December 31, 2020
Sales revenue		$241,350
Cost of goods sold		176,800
Gross profit		64,550
Operating expenses		24,750
Income from operations		39,800
Interest expense		2,950
Income before income taxes		36,850
Income tax expense		8,650
Net income		$28,200

Additional data:

1.		Dividends declared and paid were $26,800.
2.		During the year, equipment was sold for $7,550 cash. This equipment cost $18,400 originally and had a book value of $7,550 at the time of sale.
3.		All depreciation expense, $16,650, 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 a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)