Question
The following are the financial statements of Nosker Company. assets20172016 Cash $ 35,350 $ 19,150 Accounts receivable 32,100 19,750 Inventory 26,150 20,500 Equipment 59,150 77,600
The following are the financial statements of Nosker Company.
assets20172016
Cash $ 35,350 $ 19,150
Accounts receivable 32,100 19,750
Inventory 26,150 20,500
Equipment 59,150 77,600
Accumulated depreciationequipment (29,450 ) (23,750 )
Total $123,300 $113,250
Liabilities and Stockholders' Equity
Accounts payable $ 28,450 $ 16,100
Income taxes payable 7,350 8,350
Bonds payable 26,100 33,550
Common stock 18,050 14,450
Retained earnings 43,350 40,800
Total $123,300 $113,250
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales revenue$242,950
Cost of goods sold175,450
Gross profit67,500
Operating expenses23,950
Income from operations43,550
Interest expense2,300
Income before income taxes41,250
Income tax expense7,250
Net income$ 34,000
Additional data:
1. Dividends declared and paid were $31,450.
2. During the year equipment was sold for $7,900 cash. This equipment cost $18,450 originally and had accumulated depreciation of $10,550 at the time of sale.
3. All depreciation expense, $16,250, is in the operating expenses.
4. All sales and purchases are on account.
Preparea 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).)
Compute free cash flow.Free Cash Flow $
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