Problem 17-8A (Part Level Submission) Presented below are the financial statemen
ID: 2456044 • Letter: P
Question
Problem 17-8A (Part Level Submission)
Presented below are the financial statements of Nosker Company.
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$35,330
$20,260
Accounts receivable
32,230
18,050
Inventory
26,460
20,630
Equipment
59,710
77,780
Accumulated depreciation—equipment
(30,000
)
(23,020
)
Total
$123,730
$113,700
Liabilities and Stockholders’ Equity
Accounts payable
$28,210
$ 16,810
Income taxes payable
7,040
8,070
Bonds payable
27,820
33,450
Common stock
18,590
13,940
Retained earnings
42,070
41,430
Total
$123,730
$113,700
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2014
Sales revenue
$241,090
Cost of goods sold
175,960
Gross profit
65,130
Operating expenses
24,210
Income from operations
40,920
Interest expense
2,770
Income before income taxes
38,150
Income tax expense
7,720
Net income
$30,430
Additional data:
1.
Dividends declared and paid were $29,790.
2.
During the year equipment was sold for $8,480 cash. This equipment cost $18,070 originally and had a book value of $8,480 at the time of sale.
3.
All depreciation expense, $16,570, is in the operating expenses.
4.
All sales and purchases are on account.
Further analysis reveals the following.
1.
Accounts payable pertain to merchandise suppliers.
2.
All operating expenses except for depreciation were paid in cash.
Prepare a statement of cash flows for nosker company using the direct method
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$35,330
$20,260
Accounts receivable
32,230
18,050
Inventory
26,460
20,630
Equipment
59,710
77,780
Accumulated depreciation—equipment
(30,000
)
(23,020
)
Total
$123,730
$113,700
Liabilities and Stockholders’ Equity
Accounts payable
$28,210
$ 16,810
Income taxes payable
7,040
8,070
Bonds payable
27,820
33,450
Common stock
18,590
13,940
Retained earnings
42,070
41,430
Total
$123,730
$113,700
Explanation / Answer
Problem 17-8A (Part Level Submission) Presented below are the financial statemen