The following are the financial statements of Nosker Company, NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 Cash $37.900 Accounts receivable 32,700 Inventory 29.300 Equipment 59.800 Accumulated depreciation-equipment (30,000 Total $129,700 2019 $20,400 20,000 20,400 78,000 (23,800) $115,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,300 7,500 27,300 18,300 48,300 $129.700 $ 16,900 8,100 32.100 13,400 44,500 $115.000 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241.200 Cost of goods sold 175.900 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241.200 Cost of goods sold 175.900 Gross profit 65.300 Operating expenses 24,600 Income from operations 40.700 Interest expense 3,300 Income before income taxes 37,400 Income tax expense 7.000 Net income $30,400 Additional data 1. 2 Dividends declared and paid were $26,600 During the year equipment was sold for $8.900 cash. This equipment cost $18,200 originally and had a book value of $8.900 at the time of sale. All depreciation expense, $15.500, is in the operating expenses. All sales and purchases are on account 3 4 Further analysis reveals the following 1 Accounts payable pertain to merchandise suppliers All operating expenses except for depreciation were paid in cash. 2 NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Receipts from Customers 228,500 Less cash payments: To Suppliers $ (173.400) For Operating Expenses (9.100) For Income Taxes (7.600) For interest (3,300) (193.400) Net Cash Provided by Operating Activities 35,100 Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Investing Activities 8,900 8,900 Cash Flows from Financing Activities V Cash Flows from Financing Activities Issuance of Common Stock V Redemption of Bonds Payment of Dividends (26,600) Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period