Problem 17-8A (Part Level Submission) Presented below are the financial statements of Nosker Company.
NOSKER COMPANYComparative Balance SheetsDecember 31
Assets
2014
2013 Cash
$38,000
$20,000 Accounts receivable
30,000
14,000 Inventory
27,000
20,000 Equipment
60,000
78,000 Accumulated depreciationA????1equipment
(29,000
)
(24,000
) Total
$126,000
$108,000
Liabilities and StockholdersA????1 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 COMPANYIncome StatementFor the Year Ended December 31, 2014 Sales revenue
$242,000 Cost of goods sold
175,000 Gross profit
67,000 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
$32,000Additional 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.Further analysis reveals the following.1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash.
(a) Prepare a statement of cash flows for Nosker Company using the direct method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Nosker CompanyStatement of Cash FlowsFor the Year Ended December 31, 2014
$
Less cash payments:
$
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