The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheet December 31 3 16 Assets Cash Accounts Receivable Inventory Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total NOSKER COMPANY Income Statement For the Year ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 2021 $38 000 30 000 27 000 60 000 -29 000 $126.000 $24 000 7.000 27 000 18 000 50 000 $126 000 $242 000 175 000 67 000 24 000 43.000 3 000 40 000 8000 $32 000 2020 45 Instructions 46 Prepare a statement of cash flows using the indirect method. 47 $20 000 14 000 20 000 78 000 -24 000 $108 000 $15.000 8000 33 000 14 000 38 000 $108 000 18 Additional data: 19 1. Dividends declared and paid were $20,000. 0 2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 41 originally and had a book value of $8,500 at the time of sale 12 3. All depreciation expense, $14,500, is in the operating expenses. 43 4. All sales and purchases are on account. 44