90.2K

Verified Solution

Link Copied!

I need your help to answer this:

CoursHeroTranscribedText: Problem 17-07A (Video) The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $38,000 $20,000 Accounts receivable 30,000 14,000 Inventory 27,000 20,000 Equipment 60,000 78,000 Accumulated depreciation-equipment 29,000 24,000) Total $126,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $24,000 $ 15,000 Income taxes payable 7,000 8,000 Bonds payable 27,000 33,000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 Total $126,000 $108,000 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 57,000 Operating expenses 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $32,000 Additional data: 1. Dividends declared and paid were $20,000. 2. During the year, equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense, $14,500, is in the operating expenses. 4. All sales and purchases are on account. 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).)LINK TO TEXT LINK TO TEXT Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free Cash Flow Click if you would like to Show Work for this question: Open Show Work

Answer & Explanation Solved by verified expert

See Answer