Problem 17-8A

Presented below are the financial statements of Nosker Company.

NOSKER COMPANY Comparative Balance Sheets December 31
Assets	2014	2013
Cash	$34,920	$19,180
Accounts receivable	32,430	19,400
Inventory	26,490	20,070
Equipment	59,670	77,290
Accumulated depreciationequipment	(29,550	)	(23,780	)
Total	$123,960	$112,160
Liabilities and Stockholders Equity
Accounts payable	$28,260	$ 16,550
Income taxes payable	7,320	8,200
Bonds payable	27,810	32,310
Common stock	18,090	13,040
Retained earnings	42,480	42,060
Total	$123,960	$112,160

NOSKER COMPANY Income Statement For the Year Ended December 31, 2014
Sales revenue	$241,470
Cost of goods sold	176,030
Gross profit	65,440
Operating expenses	24,140
Income from operations	41,300
Interest expense	3,930
Income before income taxes	37,370
Income tax expense	8,150
Net income	$29,220

Additional data:

1.	Dividends declared and paid were $28,800.
2.	During the year equipment was sold for $7,800 cash. This equipment cost $17,620 originally and had a book value of $7,800 at the time of sale.
3.	All depreciation expense, $15,590, is in the operating expenses.
4.	All sales and purchases are on account.

Further analysis reveals the following.

1.	Accounts payable pertain to merchandise suppliers.
2.	All operating expenses except for depreciation were paid in cash.

Prepare a statement of cash flows for Nosker Company using the direct 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 InventoryDepreciation ExpenseFor Operating ExpensesFor InterestIssuance of BondsTo SuppliersIncrease in Accounts ReceivableFor Income TaxesRedemption of BondsIncrease in Income Taxes PayableNet IncomeDecrease in Accounts ReceivableIncrease in Accounts PayableCash Receipts from CustomersDecrease in Income Taxes PayableSale of EquipmentDecrease in Accounts PayableIncrease in InventoryPurchase of EquipmentIssuance of Common StockRedemption of Common StockPayment of Dividends	$
Less cash payments:
Decrease in InventoryIssuance of Common StockIncrease in Income Taxes PayablePurchase of EquipmentIncrease in InventoryDecrease in Accounts PayableIncrease in Accounts ReceivableNet IncomeDepreciation ExpenseIssuance of BondsRedemption of BondsRedemption of Common StockIncrease in Accounts PayableTo SuppliersDecrease in Income Taxes PayableDecrease in Accounts ReceivableSale of EquipmentPayment of DividendsCash Receipts from CustomersFor Operating ExpensesFor InterestFor Income Taxes	$
Depreciation ExpenseSale of EquipmentRedemption of Common StockNet IncomePayment of DividendsDecrease in InventoryCash Receipts from CustomersPurchase of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIssuance of Common StockFor InterestDecrease in Accounts ReceivableFor Income TaxesIssuance of BondsIncrease in InventoryRedemption of BondsTo SuppliersFor Operating ExpensesDecrease in Accounts PayableDecrease in Income Taxes PayableIncrease in Income Taxes Payable
Increase in Accounts ReceivableRedemption of BondsPayment of DividendsDecrease in Accounts ReceivableIssuance of BondsPurchase of EquipmentNet IncomeFor Operating ExpensesFor InterestDecrease in InventorySale of EquipmentIncrease in Accounts PayableIssuance of Common StockFor Income TaxesTo SuppliersDecrease in Income Taxes PayableRedemption of Common StockCash Receipts from CustomersIncrease in Income Taxes PayableIncrease in InventoryDepreciation ExpenseDecrease in Accounts Payable
Purchase of EquipmentNet IncomeFor Operating ExpensesCash Receipts from CustomersTo SuppliersDepreciation ExpenseIncrease in Income Taxes PayableIncrease in InventoryDecrease in Income Taxes PayableDecrease in InventorySale of EquipmentFor Income TaxesIncrease in Accounts ReceivablePayment of DividendsIssuance of Common StockIncrease in Accounts PayableDecrease in Accounts ReceivableIssuance of BondsDecrease in Accounts PayableRedemption of BondsRedemption of Common StockFor Interest
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 Receipts from CustomersPayment of DividendsDecrease in Income Taxes PayableTo SuppliersFor Income TaxesFor Operating ExpensesDecrease in Accounts PayableIncrease in Income Taxes PayableNet IncomeIncrease in InventoryDecrease in InventoryFor InterestDecrease in Accounts ReceivablePurchase of EquipmentDepreciation ExpenseIncrease in Accounts ReceivableSale of EquipmentRedemption of Common StockIssuance of Common StockIssuance of BondsIncrease in Accounts PayableRedemption of Bonds
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
To SuppliersFor Operating ExpensesRedemption of BondsPayment of DividendsRedemption of Common StockNet IncomeFor InterestFor Income TaxesDecrease in Income Taxes PayableSale of EquipmentCash Receipts from CustomersIncrease in Accounts PayableIncrease in Income Taxes PayablePurchase of EquipmentDepreciation ExpenseIssuance of Common StockDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts PayableIncrease in InventoryDecrease in Accounts ReceivableIssuance of Bonds
Increase in Accounts PayableNet IncomePayment of DividendsFor Income TaxesIncrease in Income Taxes PayableCash Receipts from CustomersDecrease in Income Taxes PayableDepreciation ExpenseTo SuppliersSale of EquipmentFor Operating ExpensesRedemption of Common StockDecrease in Accounts PayableFor InterestIncrease in InventoryDecrease in InventoryIncrease in Accounts ReceivablePurchase of EquipmentDecrease in Accounts ReceivableIssuance of Common StockIssuance of BondsRedemption of Bonds
Cash Receipts from CustomersPurchase of EquipmentIncrease in Income Taxes PayableIncrease in InventoryDecrease in Income Taxes PayableDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableSale of EquipmentIssuance of Common StockIssuance of BondsFor Operating ExpensesFor Income TaxesRedemption of BondsRedemption of Common StockTo SuppliersPayment of DividendsIncrease in Accounts PayableFor InterestNet IncomeDepreciation ExpenseDecrease in Accounts 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
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	$

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Compute free cash flow.

Free cash flow

$