Question
Sales Revenue $242,000 Cost of Goods Sold $175,000 Gross Profit $67,000 Operating expenses $24,000 Interest Expense $3,000 Interest before Income tax $40,000 Income tax expense
Sales Revenue $242,000
Cost of Goods Sold $175,000
Gross Profit $67,000
Operating expenses $24,000
Interest Expense $3,000
Interest before Income tax $40,000
Income tax expense $8,000
Net Income $32,000
Dividends declared and paid were $20,000
During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of& 8,500 at the time of Sale.
All depreciation expense $14,500, is in the operating expenses.
All sales and purchases are on account.
Prepare a statement of cash flows using the indirect method.
Compute free cash flow.
Assets 2014 2013
Cash 38,000 20,000
Accounts receivable 30,000 14,000
Inventory 27,000 20,000
Equipment 60,000 78,888
(Accumulated Dep. (29,000) (24,000)
Total 126,000 108,000
Liabilities
Accounts Payable 24,000 15,000
Income Taxes Payable 7,000 8,000
Bonds Payable 27,000 33,000
Common Stock 18,000 14,000
Retained earnings 50,000 38,000
Total 126,000 108,000
I need this answered and completed in the below format.
NOSKER COMPANY | ||
STATEMENT OF CASH FLOWS | ||
FOR THE YEAR ENDED DECEMBER 31,2014
| ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
NET INCOME | ||
ADJUSTMENTS TO RECONCILE NET INCOME | ||
TO NET CASH PROVIDED BY OPERATING ACTIVITIES | ||
DEPRECIATON EXPENSE | ||
INCREASE IN ACCOUNTS RECEIVABLE | ||
INCREASE IN INVENTORY | ||
DECREASE IN ACCOUNTS PAYABLE | ||
INCREASE IN INCOME TAXES PAYABLE | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | ||
ACTIVITIES | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||
SALE OF EQUIPMENT | ||
PURCHASE OF EQUIPMENT | ||
NET CASH PROVIDED BY FINANCING ACTIVITIES | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
ISSUANCE OF BONDS | ||
PAYMENT OF CASH DIVIDENDS | ||
NET CASH USED BY FINANCING ACTIVITIES | ||
NET DECREASE IN CASH | ||
CASH AT BEGINNING OF PERIOD | ||
CASH AT END OF PERIOD |
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