Problem 13-7A (Part Level Submission) Presented below are the financial statemen

Question

Problem 13-7A (Part Level Submission) Presented below are the financial statements of Nosker Company NOSKER COMPANY Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2015 $35,190 32,070 26,140 59,720 (29,950) 2014 $19,200 18,890 20,180 77,970 (23,670) Total $123,170 $112,570 iabilities and Stockholders Equi Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,260 7,160 27,460 17,570 42,720 $123,170 16,080 8,080 32,500 13,590 42,320 $112,570 Total NOSKER COMPANY Income Statement For the Year Ended December 31, 2015 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,860 175,420 66,440 23,710 42,730 2,860 39,870 8,020 $31,850 Additional data 1. Dividends declared and paid were $31,450 2. During the year equipment was sold for $7,650 cash. This equipment cost $18,250 originally and had a book value of $7,650 at the time of sale 3. All depreciation expense, $16,880, is in the operating expenses 4. All sales and purchases are on account

Explanation / Answer

NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities      Net income $31,850     Adjustments to reconcile net income to     net cash provided by operating activities          Depreciation expense $16,880           Increase in accounts receivable (32070-18890) -13,180           Increase in inventory (26140-20180) -5,960          Increase in accounts payable (28260-16080) 12,180          Decrease in income taxes payable (8080-7160) -920 9000          Net cash provided by operating activities 40,850 Cash flows from investing activities      Sale of equipment 7,650      Net cash provided by investing activities 7,650 Cash flows from financing activities      Issuance of common stock =17570-13590 3,980      Redemption of bonds =27460-32500 -5,040      Payment of dividends -31,450            Net cash used by financing activities . -32,510 Net increase in cash 15,990 Cash at beginning of period 19,200 Cash at end of period $                    35190

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