The following are the financial statements of Nosker Company. NOSKER COMPANY Com
ID: 2562739 • Letter: T
Question
The following are the financial statements of Nosker Company.
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash
$34,600
$19,800
Accounts receivable
32,400
18,700
Inventory
26,000
20,500
Equipment
59,250
77,650
Accumulated depreciation—equipment
(29,250
)
(23,450
)
Total
$123,000
$113,200
Liabilities and Stockholders’ Equity
Accounts payable
$28,000
$ 16,350
Income taxes payable
7,100
8,000
Bonds payable
27,700
32,500
Common stock
17,400
14,950
Retained earnings
42,800
41,400
Total
$123,000
$113,200
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales revenue
$241,350
Cost of goods sold
176,800
Gross profit
64,550
Operating expenses
24,750
Income from operations
39,800
Interest expense
2,950
Income before income taxes
36,850
Income tax expense
8,650
Net income
$28,200
Additional data:
1.
Dividends declared and paid were $26,800.
2.
During the year equipment was sold for $7,550 cash. This equipment cost $18,400 originally and had accumulated depreciation of $10,850 at the time of sale.
3.
All depreciation expense, $16,650, is in the operating expenses.
4.
All sales and purchases are on account.
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, 2017
Cash Flows from Operating Activities
Net Income
(Adjustments to reconcile net income to)
Net Cash Provided by Operating Expenses
Depreciation Expense
Increase in Inventory
Increase in Account Receivable
Increase in Account Payable
Decrease in Income Taxes Payable
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Sale of Equipment
Cash Flows from Financing Activities
Issuance of Common Stock
Redemption of Bonds
Payment of Dividends
?Cash flow???
Net Increase in Cash
Cash at end of period
Compute free cash flow
The following are the financial statements of Nosker Company.
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash
$34,600
$19,800
Accounts receivable
32,400
18,700
Inventory
26,000
20,500
Equipment
59,250
77,650
Accumulated depreciation—equipment
(29,250
)
(23,450
)
Total
$123,000
$113,200
Liabilities and Stockholders’ Equity
Accounts payable
$28,000
$ 16,350
Income taxes payable
7,100
8,000
Bonds payable
27,700
32,500
Common stock
17,400
14,950
Retained earnings
42,800
41,400
Total
$123,000
$113,200
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales revenue
$241,350
Cost of goods sold
176,800
Gross profit
64,550
Operating expenses
24,750
Income from operations
39,800
Interest expense
2,950
Income before income taxes
36,850
Income tax expense
8,650
Net income
$28,200
Additional data:
1.
Dividends declared and paid were $26,800.
2.
During the year equipment was sold for $7,550 cash. This equipment cost $18,400 originally and had accumulated depreciation of $10,850 at the time of sale.
3.
All depreciation expense, $16,650, is in the operating expenses.
4.
All sales and purchases are on account.
Explanation / Answer
NOSKER COMPANY Cash Flow Statement For year ended 31 December 2017 Cash flows from operating activities Net Income $ 28,200 Adjustment to reconcile net income to: Depreciation expense $ 16,650 Changes in current operating assets and liabilities Increase in accounts receivable $ (13,700) Increase in inventory $ (5,500) Increase in accounts payable $ 11,650 Decrease in Income tax payable $ (900) $ 8,200 Net cash provided by operating activities $ 36,400 Cash flows from investing activities Proceeds from sale of equipment $ 7,550 Net cash provided by investing activities $ 7,550 Cash flows from financing activities Cash received from stock issuance $ 2,450 Bonds repaid $ (4,800) Dividend paid $ (26,800) Net cash used by financing activities $ (29,150) Net increase in cash and cash equivalents $ 14,800 Cash and cash equivalents at beginning of period $ 19,800 Cash and cash equivalents at end of period $ 34,600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.