The following are the financial statements of Nosker Company. NOSKER COMPANY Com
ID: 2446099 • Letter: T
Question
The following are the financial statements of Nosker Company.
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
$37,700
$20,000
32,300
18,300
30,200
20,200
59,700
77,400
(29,400
)
(23,500
)
$130,500
$112,400
Liabilities and Stockholders’ Equity
$28,100
$ 16,900
7,500
8,400
26,900
32,400
17,600
14,000
50,400
40,700
$130,500
$112,400
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017
$242,600
175,300
67,300
24,900
42,400
3,100
39,300
7,000
$32,300
Additional data:
All sales and purchases are on account.
Instructions
1. Prepare a statement of cash flows using the indirect method.
2. Compute free cash flow.
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash$37,700
$20,000
Accounts receivable32,300
18,300
Inventory30,200
20,200
Equipment59,700
77,400
Accumulated depreciation—equipment(29,400
)
(23,500
)
Total$130,500
$112,400
Liabilities and Stockholders’ Equity
Accounts payable$28,100
$ 16,900
Income taxes payable7,500
8,400
Bonds payable26,900
32,400
Common stock17,600
14,000
Retained earnings50,400
40,700
Total$130,500
$112,400
Explanation / Answer
Solution:
Cash Flow Statement Cash Flow from operating Activities Net Profit 32,300 Add: Depreciation 14,000 Add: Interest Expense 3,100 Add: Income Tax Expense 7,000 56,400 Working Capital Changes Increase in accounts receivables - 14,000 Increase in Inventory - 10,000 Increase in account payables 11,200 Net profit after working capital changes 43,600 Less: Income Tax Paid 7,900 Cash Flow from operating Activities 35,700 Cash flow from Investing Activities Sale of Equipment 9,600 Cash flow from Investing Activities 9,600 Cash flow from Financing Activities Dividends Paid - 22,600 Redemption of Bonds - 5,500 Issue of Common stock 3,600 Interest Paid - 3,100 Cash flow from Financing Activities - 27,600 Changes in cash 17,700 Beginning cash 20,000 Add: Changes in cash 17,700 Ending Cash 37,700Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.