Question
The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $20,600 Accounts receivable 33,000
The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $20,600 Accounts receivable 33,000 18,700 Inventory 29,700 20,000 Equipment 59,800 77,000 Accumulated depreciationequipment (29,700 ) (23,500 ) Total $129,200 $112,800 Liabilities and Stockholders Equity Accounts payable $29,000 $ 16,200 Income taxes payable 7,500 8,300 Bonds payable 27,400 33,000 Common stock 18,600 14,300 Retained earnings 46,700 41,000 Total $129,200 $112,800 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,900 Cost of goods sold 175,200 Gross profit 67,700 Operating expenses 24,100 Income from operations 43,600 Interest expense 3,500 Income before income taxes 40,100 Income tax expense 7,700 Net income $32,400 Additional data: 1. Dividends declared and paid were $26,700. 2. During the year equipment was sold for $9,700 cash. This equipment cost $17,200 originally and had a book value of $9,700 at the time of sale. 3. All depreciation expense, $13,700, is in the operating expenses. 4. All sales and purchases are on account. Collapse question part (a) Prepare a 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).) NOSKER COMPANY Statement of Cash Flows $ Adjustments to reconcile net income to $ $
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