The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 $34,850 $20,350 Cash Accounts receivable 32,850 18,050 Inventory 26,300 20,000 Equipment 59,750 77,150 Accumulated depreciation-equipment (29,600) (23,100) $112,450 $124,150 Total Liabilities and Stockholders' Equity Accounts payable $28,750 $16,400 7,300 Income taxes payable 8,200 Bonds payable 27,900 32,900 13,350 Common stock 18,800 41,400 Retained earnings 41,600 $124,150 $112,450 Total NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241,550 176,050 Cost of goods sold 65,500 Gross profit 23,450 Operating expenses Income from operations 42,050 2,650 Interest expense Income before income taxes 39,400 7,150 Income tax expense $32,250 Net income Additional data: 1. Dividends declared and paid were $32,450 2. During the year, equipment was sold for $8,300 cash. This equipment cost $17,400 originally and had a book value of $8,300 at the time of sale. 3. All depreciation expense, $15,600, is in the operating expenses. 4. All sales and purchases are on account. Your answer is correct 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 For the Year Ended December 31, 2020 Cash Flows from Operating Activities 32250.00 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 15600.00 Depreciation Expense (14800.00) Increase in Accounts Receivable (6300.00) Increase in Inventory Increase in Accounts Payable 12350.00 (900.00) Decrease in Income Taxes Payable 5950.00 Net Cash Provided by Operating Activities 38200.00 Cash Flows from Investing Activities Sale of Equipment 8300.00 Net Cash Provided by Investing Activities 8300.00 Cash Flows from Financing Activities (5000.00) Redemption of Bonds 5450.00 Issuance of Common Stock (32450.00) Payment of Dividends (32000.00) Net Cash Used by Financing Activities Net Increase in Cash 14500.00 Cash at Beginning of Period 20350.00 34850.00 Cash at End of Period X Your answer is incorrect. Try again. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) X Free Cash Flow 14500.00