Prepare a statement of cash flows using the indirect method

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Reference no: EM131105202

The following are the financial statements of Nosker Company.

NOSKER COMPANY
Comparative Balance Sheets
December 31

Assets

2017

2016

Cash

$36,900

$20,000

Accounts receivable

32,700

18,300

Inventory

29,100

20,000

Equipment

59,600

78,000

Accumulated depreciation-equipment

(29,700

(23,000)

   Total

$128,600

$113,300

Liabilities and Stockholders' Equity



Accounts payable

$28,400

$ 16,700

Income taxes payable

7,200

8,200

Bonds payable

26,200

32,700

Common stock

17,200

13,900

Retained earnings

49,600

41,800

   Total

$128,600

$113,300

NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017

Sales revenue

$241,500

Cost of goods sold

176,500

Gross profit

65,000

Operating expenses

23,400

Income from operations

41,600

Interest expense

3,400

Income before income taxes

38,200

Income tax expense

7,000

Net income

$31,200

Additional data:

1. Dividends declared and paid were $23,400.
2. During the year equipment was sold for $9,800 cash. This equipment cost $18,400 originally and had a book value of $9,800 at the time of sale.
3. All depreciation expense, $15,300, is in the operating expenses.
4. All sales and purchases are on account.

(a) Prepare a statement of cash flows using the indirect method.

Reference no: EM131105202

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