Problem 17-07A (Video) The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Equipment Accumulated depreciation equipment Total $35,100 32,150 26,050 59,800 (29,900) $123,200 $19,800 18,450 20,300 77,500 (23,550) $ 112,500 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,700 7,350 26,600 18,600 41,950 $123,200 $ 16,750 8,150 32,450 14,900 40,250 $112,500 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 $242,200 176,000 66,200 23,600 42,600 2,150 40,450 8,950 $31,500 Net income Additional data: 1. Dividends declared and paid were $29,800. 2. During the year, equipment was sold for $8,100 cash. This equipment cost $17,700 originally and had a book value of $8,100 at the time of sale. 3. All depreciation expense, $15,950, is in the operating expenses. 4. All sales and purchases are on account. Your answer is partially correct. Try again. 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 For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 31500 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 15950 Increase in Accounts Receivable (13700) Increase in Inventory HADON 57501 Increase in Accounts Payable 11950 Decrease in Income Taxes Payable (800) 39150 Net Cash Provided by Operating Activities 52650 Cash Flows from Investing Activities Sale of Equipment Net Cash Used by Financing Activities Cash Flows from Financing Activities Issuance of Common Stock X Redemption of Bonds 001 Payment of Dividends Net Cash Used by Investing Activities (29800) Net Increase in Cash 8100 Cash at Beginning of Period 19800 Cash at End of Period x Your answer is incorrect. Try again. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free Cash Flow Click if you would like to Show Work for this question: Open Show Work