The following are the financial statements of Nosker Company.

NOSKER COMPANY

Comparative Balance Sheets

December 31

Assets

2020

2019

Cash

$36,100

$20,600

Accounts receivable

32,500

19,500

Inventory

29,300

20,000

Equipment

59,000

77,300

Accumulated depreciationequipment

(29,600

)

(23,800

)

Total

$127,300

$113,600

Liabilities and Stockholders' Equity

Accounts payable

$28,300

$16,600

Income taxes payable

7,200

8,400

Bonds payable

26,200

33,400

Common stock

18,400

13,000

Retained earnings

47,200

42,200

Total

$127,300

$113,600

NOSKER COMPANY

Income Statement

For the Year Ended December 31, 2020

Sales revenue

$242,800

Cost of goods sold

175,700

Gross profit

67,100

Operating expenses

23,500

Income from operations

43,600

Interest expense

2,200

Income before income taxes

41,400

Income tax expense

8,400

Net income

$33,000

Additional data:

1.

Dividends declared and paid were $28,000.2.

During the year, equipment was sold for $9,500cash. This equipment cost $18,300originally and had a book value of $9,500 at the time of sale.3.

All depreciation expense, $14,600, 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.

(a)

Prepare a statement of cash flows for Nosker Company using the direct method.