Problem 13-7A (Part Level Submission) NOSKER COMPANY Comparative Balance Sheets
ID: 2456088 • Letter: P
Question
Problem 13-7A (Part Level Submission)
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2015
2014
$34,880
$20,440
32,630
19,290
26,200
20,170
59,870
77,860
(29,440
)
(23,640
)
$124,140
$114,120
Liabilities and Stockholders’ Equity
$28,430
$ 16,710
7,200
8,210
26,140
33,430
18,190
14,910
44,180
40,860
$124,140
$114,120
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2015
$241,830
175,980
65,850
24,270
41,580
2,640
38,940
8,810
$30,130
Problem 13-7A (Part Level Submission)
Presented below are the financial statements of Nosker Company.NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets
2015
2014
Cash$34,880
$20,440
Accounts receivable32,630
19,290
Inventory26,200
20,170
Equipment59,870
77,860
Accumulated depreciation—equipment(29,440
)
(23,640
)
Total$124,140
$114,120
Liabilities and Stockholders’ Equity
Accounts payable$28,430
$ 16,710
Income taxes payable7,200
8,210
Bonds payable26,140
33,430
Common stock18,190
14,910
Retained earnings44,180
40,860
Total$124,140
$114,120
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2015
$241,830
Cost of goods sold175,980
Gross profit65,850
Operating expenses24,270
Income from operations41,580
Interest expense2,640
Income before income taxes38,940
Income tax expense8,810
Net income$30,130
Additional data: 1. Dividends declared and paid were $26,810. 2. During the year equipment was sold for $8,220 cash. This equipment cost $17,990 originally and had a book value of $8,220 at the time of sale. 3. All depreciation expense, $15,570, is in the operating expenses. 4. All sales and purchases are on account.
Explanation / Answer
CASH FLOW OF A COMPANY
8220
PARTICULARS AMOUNT $ GRAND AMOUNT$ CASH FLOW FROM OPERATING ACTIVITIES Net Income 30130 Adjustments to reconcile net income to net cash provided by operating activities: Deprecaition Expense 15570 Increase in Accounts Receivable (13340) Increase in Inventory (6030) Increase in Accounts Payable 11720 Decrease in Taxes Payable (1010) Net cash Provided by Operating activities 37040 CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of equipment 8220 Net cash Provided by Investing activities8220
CASH FLOW FROM FINANCING ACTIVITIES Repayment of bonds payable (7290) Cash received from issuing stock 3280 Dividend paid (26810) Net cash Provided by Financing activities (30820) Net increase in cash 14440 Cash in beggining 20440 CASH BALANCE AT END 34880