Problem 17-07A (Video) The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets Assets Cash Accounts receivable Inventory Equipment December 31 Accumulated depreciation-equipment 2020 2019 $35,750 $19,550 32,650 19,350 26,800 20,100 59,300 77,550 (29,950) (23,150) $124,550 $113,400 Total Liabilities and Stockholders' Equity Accounts payable $28,600 $ 16,650 Income taxes payable 7,050 8,300 Bonds payable 27,100 32,900 Common stock 17,900 13,800 Retained earnings 43,900 41,750 Total $124,550 $113,400 NOSKER COMPANY Income Statement Sales revenue For the Year Ended December 31, 2020 Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,800 176,700 65,100 24,750 40,350 3,750 36,600 7,700 $28,900 Additional data: 1. Dividends declared and paid were $26,750. 2. During the year, equipment was sold for $7,650 cash. This equipment cost $18,250 originally and had a book value of $7,650 at the time of sale. 3. All depreciation expense, $17,400, is in the operating expenses. 4. All sales and purchases are on account.