Problem 17-7A Presented below are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $35,540 $20,040 Accounts receivable 32,480 19,380 Inventory 26,360 20,580 Equipment 59,890 77,390 Accumulated depreciationequipment (29,190 ) (23,570 ) Total $125,080 $113,820 Liabilities and Stockholders Equity Accounts payable $28,620 $ 16,960 Income taxes payable 7,170 8,070 Bonds payable 27,280 32,980 Common stock 18,180 13,110 Retained earnings 43,830 42,700 Total $125,080 $113,820 NOSKER COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue $242,320 Cost of goods sold 175,450 Gross profit 66,870 Operating expenses 23,040 Income from operations 43,830 Interest expense 3,930 Income before income taxes 39,900 Income tax expense 8,950 Net income $30,950 Additional data: 1. Dividends declared and paid were $29,820. 2. During the year equipment was sold for $7,550 cash. This equipment cost $17,500 originally and had a book value of $7,550 at the time of sale. 3. All depreciation expense, $15,570, 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 - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2014 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Decrease in Inventory Issuance of Common Stock Increase in Accounts Receivable For Income Taxes Purchase of Equipment Decrease in Accounts Payable Decrease in Income Taxes Payable Increase in Income Taxes Payable Decrease in Accounts Receivable Depreciation Expense Issuance of Bonds Net Income Sale of Equipment Increase in Accounts Payable Redemption of Common Stock Redemption of Bonds Increase in Inventory For Operating Expenses For Interest Payment of Dividends To Suppliers $ Adjustments to reconcile net income to Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash For Interest Redemption of Common Stock Net Income Decrease in Income Taxes Payable Purchase of Equipment For Operating Expenses Increase in Income Taxes Payable Issuance of Common Stock Payment of Dividends Decrease in Accounts Payable To Suppliers Decrease in Inventory For Income Taxes Increase in Inventory Increase in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Receivable Depreciation Expense Sale of Equipment Issuance of Bonds Redemption of Bonds $ Decrease in Accounts Payable Redemption of Common Stock Payment of Dividends For Income Taxes To Suppliers Increase in Inventory Increase in Income Taxes Payable Decrease in Income Taxes Payable Issuance of Bonds Redemption of Bonds Increase in Accounts Receivable Increase in Accounts Payable Decrease in Inventory Decrease in Accounts Receivable Sale of Equipment Net Income Purchase of Equipment Depreciation Expense Issuance of Common Stock For Operating Expenses For Interest Issuance of Bonds Increase in Accounts Receivable Increase in Income Taxes Payable Decrease in Accounts Receivable Issuance of Common Stock Purchase of Equipment For Operating Expenses For Income Taxes Increase in Accounts Payable Decrease in Accounts Payable Decrease in Income Taxes Payable Increase in Inventory Decrease in Inventory Sale of Equipment Redemption of Bonds Redemption of Common Stock Net Income Payment of Dividends To Suppliers For Interest Depreciation Expense Decrease in Inventory For Operating Expenses Decrease in Accounts Payable Decrease in Income Taxes Payable Increase in Accounts Receivable Sale of Equipment Issuance of Common Stock To Suppliers Decrease in Accounts Receivable Net Income Increase in Income Taxes Payable Issuance of Bonds Redemption of Bonds Redemption of Common Stock Increase in Inventory Payment of Dividends For Interest Purchase of Equipment For Income Taxes Depreciation Expense Increase in Accounts Payable Issuance of Common Stock Decrease in Income Taxes Payable Decrease in Accounts Payable Issuance of Bonds Redemption of Bonds Redemption of Common Stock Decrease in Accounts Receivable Net Income For Income Taxes For Interest Increase in Income Taxes Payable To Suppliers Decrease in Inventory Sale of Equipment Depreciation Expense For Operating Expenses Increase in Inventory Increase in Accounts Payable Purchase of Equipment Payment of Dividends Increase in Accounts Receivable Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Issuance of Bonds To Suppliers Increase in Income Taxes Payable Increase in Inventory Redemption of Bonds Increase in Accounts Receivable Decrease in Accounts Receivable Sale of Equipment Decrease in Accounts Payable Purchase of Equipment For Operating Expenses Issuance of Common Stock Redemption of Common Stock Payment of Dividends For Interest Depreciation Expense For Income Taxes Net Income Decrease in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Increase in Inventory Increase in Accounts Receivable Increase in Accounts Payable Decrease in Accounts Payable Decrease in Income Taxes Payable Redemption of Common Stock Decrease in Inventory Increase in Income Taxes Payable Payment of Dividends For Operating Expenses Issuance of Bonds Decrease in Accounts Receivable Sale of Equipment Depreciation Expense Purchase of Equipment For Income Taxes Issuance of Common Stock To Suppliers Redemption of Bonds For Interest Net Income Increase in Accounts Receivable Increase in Accounts Payable Increase in Income Taxes Payable Decrease in Accounts Payable Issuance of Bonds Decrease in Income Taxes Payable Redemption of Bonds Decrease in Accounts Receivable Increase in Inventory Decrease in Inventory Sale of Equipment Purchase of Equipment Issuance of Common Stock Redemption of Common Stock For Operating Expenses Payment of Dividends Net Income To Suppliers For Interest For Income Taxes Depreciation Expense For Income Taxes Decrease in Income Taxes Payable Redemption of Common Stock Decrease in Accounts Payable Decrease in Accounts Receivable Redemption of Bonds Sale of Equipment Payment of Dividends To Suppliers For Interest Increase in Inventory Increase in Accounts Payable Net Income Purchase of Equipment Increase in Income Taxes Payable Issuance of Bonds For Operating Expenses Depreciation Expense Decrease in Inventory Increase in Accounts Receivable Issuance of Common Stock Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash $