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Presented below are the financial statements of Nosker Company. NOSKER COMPANY C

ID: 2588527 • Letter: P

Question

Presented below are the financial statements of Nosker Company.

NOSKER COMPANY
Comparative Balance Sheets
December 31

Assets

2015

2014

$34,540

$19,780

32,870

18,820

26,590

20,650

59,530

77,930

(29,530

)

(23,720

)

$124,000

$113,460

Liabilities and Stockholders’ Equity

$28,380

$ 16,920

7,430

8,430

26,690

33,560

18,860

14,940

42,640

39,610

$124,000

$113,460

NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2015

$242,650

176,880

65,770

23,360

42,410

3,770

38,640

8,480

$30,160


Additional data:

All sales and purchases are on account.

Prepare a statement of cash flows using the indirect method

NOSKER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015

Adjustments to reconcile net income to

NOSKER COMPANY
Comparative Balance Sheets
December 31

Assets

2015

2014

Cash

$34,540

$19,780

Accounts receivable

32,870

18,820

Inventory

26,590

20,650

Equipment

59,530

77,930

Accumulated depreciation—equipment

(29,530

)

(23,720

)

   Total

$124,000

$113,460

Liabilities and Stockholders’ Equity

Accounts payable

$28,380

$ 16,920

Income taxes payable

7,430

8,430

Bonds payable

26,690

33,560

Common stock

18,860

14,940

Retained earnings

42,640

39,610

   Total

$124,000

$113,460

Explanation / Answer

Statement of cash flow :

Cash flow from operating activities Net income 30160 Adjustment to reconcile net income Depreciation exp 15950 Increase account receivable (14050) Increase inventoy (5940) Increase account payable 11460 Decrease income tax payable (1000) Net cash flow from operating activities 36580 Cash flow from investing activities Sale of equipment 8260 Net cash flow from investing activities 8260 Cash flow from financing activities Dividend paid (27130) Repaid bonds payable (6870) Issue common stock 3920 Net cash flow from financing activities (30080) Net cash flow 14760 Beginning cash 19780 Ending cash 34540
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