Problem 13-7A (Part Level Submission) The following are the financial statements
ID: 2510202 • Letter: P
Question
Problem 13-7A (Part Level Submission) The following are the financial statements of Nosker Company NOSKER COMPANY Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accum 2017 2016 $34,950 $19,600 18,050 20,500 77,700 32,500 26,350 59,850 (29,650) ulated depreciation-equipment (23,200) Total $124,000 $112,650 Liabilities and Stockholders' Equi Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $29,000 $16,250 8,400 32,450 14,200 41,350 $124,000 $112,650 7,400 26,400 18,350 42,850 Total NOSKER COMPANY For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,150 175,350 65,800 24,500 41,300 3,800 37,500 8,200 29,300 Additional data: 1. Dividends declared and paid were $27,800 2. During the year equipment was sold for $8,000 cash. This equipment cost $17,850 originally and had accumulated depreciation of $9,850 at the time of sale 3. All depreciation expense, $16,300, is in the operating expenses 4. All sales and purchases are on account.Explanation / Answer
NOSKER COMPANY Statement of Cash Flow For the Year ended December 31,2017 Cash flow from Operating activities Net Income $29,300.00 Adjustments to reconcile net income to Cash flow from Operating activities Depreciation $16,300.00 Increase in Accounts Receivables -$14,450.00 Increase in Inventory -$5,850.00 Increase in Accounts Payable $12,750.00 Decrease in Income Tax Payable -$1,000.00 $7,750.00 Net Cash available from Operating Activities $37,050.00 Cash flow from Investing activities Sale of equipment $8,000.00 Net Cash available from Investing Activities $8,000.00 Cash flow from Financing Activities Dividend paid -$27,800.00 Repayment of Bonds Payable -$6,050.00 Issue of Common stock $4,150.00 Net Cash used for Financing activities -$29,700.00 Net Cash surplus / (deficit) $15,350.00 Add : Cash balance as on 1.1.17 $19,600.00 Cash balance as on 31.12.17 $34,950.00 Calculation of Gain / (loss) on sale of equipment Cost of equipment sold $17,850.00 Less : Accumulated Depreciation $9,850.00 Book value of equipment $8,000.00 Less : Sale value of equipment $8,000.00 Gain / (Loss) $0.00 Calculation of purchase of equipment Cost of equipment as on 2017 $59,850.00 Add : Cost of equipment sold $17,850.00 Less : Cost of equipment as on 2016 $77,700.00 Purchase of equipment $0.00