Question

Problem 13-7A (Part Level Submission) Presented below are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2015 Cash $34,440 Accounts receivable 32,740 Inventory 26,900 Equipment 59,520 Accumulated depreciation-equipment (29,940 ) Total $123,660 2014 $19,420 18,620 20,940 77,380 (23,580 ) $112,780 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,190 7,430 27,000 17,080 43,960 $123,660 $ 16,030 8,450 33,520 13,150 41,630 $112,780 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 $241,350 175,560 65,790 23,040 42,750 2,830 39,920 7,470 $32,450

Answer 1

   Nosker Company

Statement of Cash Flow ( Indirect Method)

For the Year Ended December 31, 2015

Particulars	Amount
Net Income	$ 32,450
Add: Depreciation Expanse	$ 16,690
Cash Flow before in the working capital	$ 49,140
(Less) Increase in Accounts Receivable ($32,740 - $18,620)	($ 14,120)
(Less) Increase in Inventory ( $ 26,900 - $20,940 )	( $ 5,960)
Add : Increase in Accounts Payable ( $ 28,190 - $ 16,030 )	$ 12,160
(Less) Decrease in Tax Payable ( $ 8,450 - $ 7,430 )	($ 1,020)
Net Cash Flow from Operating Activities ( a)	$ 40,200
Cash Flow from Investing Activities
Cash Inflow from the sale of equipment	$ 7,530
Net Cash Flow from Investing Activities (b)	$ 7,530
Cash Flow from Financing Activities
Cash Received from issuing common stock ( $ 17,080 - $ 13,150)	$ 3,930
Cash used in bond redumption ($33,520 - $ 27,000)	($ 6,520)
(Less) Dividend Payment	($ 30,120)
Net Cash Flow from Financing Activities (c)	($ 32,710)
Total cash generated during the year	$ 15,020
Add: Beginning Cash Balance	$ 19,420
Cash balance at the end of the year	$ 34,440