Nosker Company Comparative Balance Sheets December 31 Assets 2015 Nosker Company
ID: 2465183 • Letter: N
Question
Nosker Company Comparative Balance Sheets December 31 Assets 2015
Nosker Company
Comparative Balance Sheets
December 31
Assets 2015 2014
Cash $38,000 $20,000
Accounts receivable $30,000 $14,000
Inventory $27,000 $20,000
Equipment $60,000 $78,000
Accumulated Depreciation- Equipment ($29,000) ($24,000)
Total $126,000 $108,000
Nosker Company
Income Statement
For the Year Ended December 31, 2015
Sales revenue $242,000
Cost of Goods Sold $175,000
Gross Profit $67,000
Operating Expense $24,000
Income From Operations $43,000
Interest Expense $3,000
Income before income taxes $40,000
Income Taxes Expense $8,000
Net Income $32,000
.
Additional data:
Dividends declared and paid were $20,000.
During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
All depreciation expense, $14,500, is in the operating expenses.
All sales and purchases are on account.
Instructions
Prepare a statement of cash ows using the indirect method.
Compute free cash ow.
Explanation / Answer
Answer : Cash flow
* Liabialty & Capital side did not given in numerical, hence assume that Account payable Increase by $ 6000.
Cash Flow at 2015 Sales 242000 Increase in account receivables -16000 Cash collection 226000 Cost of Goods Sold 175000 Increase in inventories 7000 Increase in Prepaid expenses 0 Decrease in Accrued Liabilities 0 increase in account payable * -6000 Cash payment for purchase 176000 Other Operating exp. 24000 Cash operation expenses 24000 Interest Expenses 3000 Cash Interest 3000 Income Tax 8000 Increase in Income tax payable 0 Cash Payment for income tax 8000 Net Cash Flow From Operation 15000 Investment activities Decrease in Equipment 23000 Loss on sale of Equipment 0 Profit on sale of Long term investment 0 Decrease In long term investment 0 Cash flow from investment 23000 Financing Activities Buy Back of stock 0 Contributed Capital in excess of pay 0 Dividend paid 20000 issue of Bonds 0 Cash flow from Financing -20000 Net Cash Flow 18000 Cash at 2015 38000 Cash at 2014 20000 18000Related Questions
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