Accounts payable pertain to operating expenses. Instructions Prepare the operati
ID: 2586777 • Letter: A
Question
Accounts payable pertain to operating expenses. Instructions Prepare the operating activities section of the statement of cash flows using the indirect method ies *P13-6A Data for Zumbrunn Company are presented in P13-5A. Instructions repare the operating activities section of the statement of cash flows using the direct method. P13-7A The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment 2017 2016 s 38,000 S 20,000 30,000 27,000 60,000 (29,000) 14,000 20,000 78,000 (24,000) $108,000 ecmlated deprecation cquipment Total $126,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings S 24,000 7,000 27,000 18,000 50,000 s 15,000 8,000 33,000 14,000 38,000 $108,000 TotalExplanation / Answer
1. Cash Flow statement is as prepared below:
2. Free Cash Flow
Net cash flow provided by operating activities 31,500
Less: Capital expenditures 0
Less: Dividends 20,000
Free cash Flow is 11,500
Nosker Company Statement of Cash Flows For the year ended December 31, 2017 Particulars Amount ($) Amount ($) Net Income 32,000 Adjustments to reconcile net income to net cash provided by opearting activities Depreciation 14,500 Increase in account receivable -16,000 Increase in Inventory -7,000 Increase in Accounts Payable 9,000 Decrease in Income tax payable -1,000 -500 Net Cash flows from Operating Activities 31,500 Cash flows from Investing Activities: Sale of Equipment 8,500 Net Cash flows provided by investing activities 8,500 Cash flows from Financing Activities: Issuance of Common Stock 4,000 Redemption of bonds -6,000 Dividends Paid -20,000 Net Cash flows used in financing activities -22,000 Net increase in Cash balance 18,000 Cash as of January 1,2017 20,000 Cash as of December 31, 2017 38,000