Problem 17-07A (Video) The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $35,750 $19,550 Accounts receivable 32,650 19,350 Inventory 26,800 20,100 Equipment 59,300 77,550 Accumulated depreciation equipment (29,950) (23,150) Total $124,550 $113,400 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,600 7,050 27,100 17,900 43,900 $124,550 $ 16,650 8,300 32,900 13,800 41,750 $113,400 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 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 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a signe.g.-15,000 or in parenthesis e... (15,000).) NOSKER COMPANY Statement of Cash Flows December 31, 2020 Cash Flows from Operating Activities Net Income 28900 Adjustments to reconcile net income to Net Increase in Coth Increase in Accounts Receivable 13300 Increme in Inventory 6700 Increase in Accounts Payable 11950 Decrease in Accounts Payable Decrease in Income Taxes Payable 37000 1250 37400 Cash Flows from Investing Activities 13600 Cash Flows from Investing Activities > Redemption of Bonds 5800 Cash at Beginning of Period HA Compute free cash flow. (Enter negative amount using either a negative sign preceding the number Free Cash Flow