The following are the financial statements of Nasker Company NOSKER COMPANY Comp

Question

The following are the financial statements of Nasker Company NOSKER COMPANY Comparative Balance Sheets December 31 2016 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-eauipment 2017 $ 35,250 32,500 26,050 59,450 $ 19,700 18,050 21,000 77,950 Total $123.400 $113.200 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earninas $28,200 7,200 27,000 18,800 42.200 $ 16,500 8,200 33,800 14,950 Total NOSKER COMPANY Income Statement For the Year Ended December 31. 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,500 176,250 65,250 24,100 41,150 2,650 38,500 7,700 $30,800 Additional data: 1. Dividends declared and paid were $28,350 2. During the year equipment was sold for $7,850 cash. This equipment cost $18,500 originally and had accumulated depreciation of $10,650 at the time of sale 3. All depreciation expense, $17,000, is in the operating expenses 4. All sales and purchases are on account

Explanation / Answer

Statement of cash flow :

Cash flow from operating activities Net income 30800 Adjustment to reconcile net income to Cash flow from operating activities Depreciation expense 17000 Increase account receivable -14450 Increase Inventory -5050 Increase account payable 11700 Decrease income tax payable -1000 8200 Net cash flow from operating activities 39000 Cash flow from investing activitiess Sale of equipment 7850 Net cash flow from investing activities 7850 Cash flow from financing activities Bonds repaid -6800 Issue common Stock 3850 Dividend paid -28350 Net cash used in financing activities -31300 Net cash flow 15550 Cash at the beginning of the year 19700 Cash at the end of the year 35250

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