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 receivable32,870
18,820
Inventory26,590
20,650
Equipment59,530
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 payable7,430
8,430
Bonds payable26,690
33,560
Common stock18,860
14,940
Retained earnings42,640
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 34540Related Questions
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