AB 116 WEEK 9 PROBLEM 17-7A

AB 116 WEEK 9 Problem 17 7A
Presented below are the financial statements of Nosker Company.
NOSKER COMPANY
Comparative Balance Sheets
December 31
Assets		2014		2013
Cash		$34,540			$20,310	
Accounts receivable		32,440			19,750	
Inventory		26,160			20,270	
Equipment		59,490			77,870	
Accumulated depreciation—equipment		(29,490	)		(23,150	)
   Total		$123,140	 		$115,050	 
						
Liabilities and Stockholders’ Equity						
Accounts payable		$28,560			$ 16,790	
Income taxes payable		7,480			8,010	
Bonds payable		26,720			33,500	
Common stock		17,600			14,930	
Retained earnings		42,780	 		41,820	 
   Total		$123,140	 		$115,050	 

NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2014
Sales revenue		$241,370
Cost of goods sold		176,430
Gross profit		64,940
Operating expenses		23,230
Income from operations		41,710
Interest expense		2,090
Income before income taxes		39,620
Income tax expense		7,350
Net income		$32,270

Additional data:
1.		Dividends declared and paid were $31,310.
2.		During the year equipment was sold for $8,160 cash. This equipment cost $18,380 originally and had a book value of $8,160 at the time of sale.
3.		All depreciation expense, $16,560, is in the operating expenses.
4.		All sales and purchases are on account.



	 
 
 	 
 	Your answer is correct. 
 	 
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)