Problem 17-7A The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $37,200 $19,800 Accounts receivable 33,000 18,700 Inventory 30,400 20,400 Equipment 59,300 78,000 Accumulated depreciationequipment (29,300 ) (23,300 ) Total $130,600 $113,600 Liabilities and Stockholders Equity Accounts payable $28,700 $ 16,000 Income taxes payable 7,300 8,300 Bonds payable 27,400 33,100 Common stock 18,200 14,300 Retained earnings 49,000 41,900 Total $130,600 $113,600 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,900 Cost of goods sold 175,600 Gross profit 67,300 Operating expenses 24,800 Income from operations 42,500 Interest expense 4,000 Income before income taxes 38,500 Income tax expense 7,500 Net income $31,000 Additional data: 1. Dividends declared and paid were $23,900. 2. During the year equipment was sold for $9,600 cash. This equipment cost $18,700 originally and had a book value of $9,600 at the time of sale. 3. All depreciation expense, $15,100, is in the operating expenses. 4. All sales and purchases are on account. Please use the indirect method.