Prepare a statement of cash f indirect mehed, and compade free Excel P13.7A (LO 2, 3), AN The following are the financial statements of Nosker Company, Nosker Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation equipment Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 2020 5 38.000 30,000 27,000 60,000 $126,000 Nosker Company Income Statement For the Year Ended December 31, 2020 $242,000 $ 24,000 7,000 27,000 18,000 50,000 $126,000 Instructions a. Prepare a statement of cash flows for Nosker Company using the direct method. b. Compute free cash flow. 175,000 67,000 24,000 43,000 3,000 40,000 8,000 $ 32,000 3. All depreciation expense, $14,500, is in the operating expenses. 4. All sales and purchases are on account *P13.8A (LO 3, 4), AN Data for Nosker Company are presented in P13.7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash 2019 $ 20,000 14,000 20,000 78,000 (24,000) $108,000 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. $ 15,000 8,000 $108.000 Prepare a statement of cash firs direct method, and compute free cas Excel a. Cash from operating activities $31,500
Prepare a statement of cash f indirect mehed, and compade free Excel P13.7A (LO 2, 3), AN The following are the financial statements of Nosker Company, Nosker Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation equipment Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 2020 5 38.000 30,000 27,000 60,000 $126,000 Nosker Company Income Statement For the Year Ended December 31, 2020 $242,000 $ 24,000 7,000 27,000 18,000 50,000 $126,000 Instructions a. Prepare a statement of cash flows for Nosker Company using the direct method. b. Compute free cash flow. 175,000 67,000 24,000 43,000 3,000 40,000 8,000 $ 32,000 3. All depreciation expense, $14,500, is in the operating expenses. 4. All sales and purchases are on account *P13.8A (LO 3, 4), AN Data for Nosker Company are presented in P13.7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash 2019 $ 20,000 14,000 20,000 78,000 (24,000) $108,000 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. $ 15,000 8,000 $108.000 Prepare a statement of cash firs direct method, and compute free cas Excel a. Cash from operating activities $31,500
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