The following are the financial statements of Nosker Company.
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NOSKER COMPANY
Comparative Balance Sheets
December 31
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Assets
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2017
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2016
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Cash
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$36,900
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$20,000
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Accounts receivable
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32,700
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18,300
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Inventory
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29,100
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20,000
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Equipment
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59,600
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78,000
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Accumulated depreciation-equipment
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(29,700
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(23,000)
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Total
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$128,600
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$113,300
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Liabilities and Stockholders' Equity
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|
|
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Accounts payable
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$28,400
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$ 16,700
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Income taxes payable
|
7,200
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8,200
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Bonds payable
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26,200
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32,700
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Common stock
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17,200
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13,900
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Retained earnings
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49,600
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41,800
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Total
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$128,600
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$113,300
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NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017
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Sales revenue
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$241,500
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Cost of goods sold
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176,500
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Gross profit
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65,000
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Operating expenses
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23,400
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Income from operations
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41,600
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Interest expense
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3,400
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Income before income taxes
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38,200
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Income tax expense
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7,000
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Net income
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$31,200
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Additional data:
1. Dividends declared and paid were $23,400.
2. During the year equipment was sold for $9,800 cash. This equipment cost $18,400 originally and had a book value of $9,800 at the time of sale.
3. All depreciation expense, $15,300, is in the operating expenses.
4. All sales and purchases are on account.
(a) Prepare a statement of cash flows using the indirect method.