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Question 4 The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory
Question 4 The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Total $35,250 32,050 26,200 59,050 (29,200) $123,350 $20,150 19,700 20,700 77,900 (23,750) $114,700 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,650 7,450 26,600 18,550 42,100 $123,350 $ 16,700 8,100 32,050 14,250 43,600 $114,700 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241,750 175,450 66,300 24,850 Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 41,450 2,650 38,800 8,600 $30,200 Additional data: 1. Dividends declared and paid were $31,700. 2. During the year, equipment was sold for $8,350 cash. This equipment cost $18,850 originally and had a book value of $8,350 at the time of sale. 3. All depreciation expense, $15,950, is in the operating expenses. 4. All sales and purchases are on account. (a) 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).) (a) 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 December 31, 2020 Cash Flows from Operating Activities Net Income 30,200 $ Adjustments to reconcile net income to Net Decrease in Cash Increase in Accounts Receivable $ Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Cash Flows from Financing Activities > Redemption of Bonds
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