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

The following are the financial statements of Nosker Company.

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 Cash Accounts receivable Inventory Equipment $34,450 32,650 26,400 59,550 (29,000) $124,050 2019 $20,700 18,100 20,250 77,650 (23,250) $113,450 Accumulated depreciation equipment Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,600 7,350 27,800 19,000 41,300 $124,050 $ 16,150 8,500 33,600 13,050 42,150 $113,450 Total $242,650 176,650 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 66,000 24,400 41,600 3,850 Income tax expense 37,750 8,900 $28,850 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. Cash Flows from Investing Activities Sale of Equipment Cash Flows from Investing Activities Cash Flows from Financing Activities Issuance of Common Stock Redemption of Bonds Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period (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).) NOSKER COMPANY Statement of Cash Flows December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Cash Flows from Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities