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NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities Net income Value Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Increase in accounts receivable Value Value Increase in inventory Increase in accounts payable Decrease in income taxes payable Value Value Value Net cash provided by operating activities ? Cash flows from investing activities Sale of equipment Net cash provided by investing activities Value ? Cash flows from financing activities Issuance of common stock Value Redemption of bonds Payment of dividends Net cash used by financing activities Value Value Net increase in cash ? Cash at beginning of period Cash at end of period

NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities Net income Value Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Increase in accounts receivable Value Value Increase in inventory Increase in accounts payable Decrease in income taxes payable Value Value Value Net cash provided by operating activities ? Cash flows from investing activities Sale of equipment Net cash provided by investing activities Value ? Cash flows from financing activities Issuance of common stock Value Redemption of bonds Payment of dividends Net cash used by financing activities Value Value Net increase in cash ? Cash at beginning of period Cash at end of period

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities Net income Value Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Value Increase in accounts receivable Value Increase in inventory Value Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Value Value ? ? Cash flows from investing activities Sale of equipment Net cash provided by investing activities Value ? Cash flows from financing activities Issuance of common stock Value Redemption of bonds Payment of dividends Net cash used by financing activities Value Value ? Net increase in cash ? Cash at beginning of period Cash at end of period ? ?
Transcribed Image Text:NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities Net income Value Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Value Increase in accounts receivable Value Increase in inventory Value Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Value Value ? ? Cash flows from investing activities Sale of equipment Net cash provided by investing activities Value ? Cash flows from financing activities Issuance of common stock Value Redemption of bonds Payment of dividends Net cash used by financing activities Value Value ? Net increase in cash ? Cash at beginning of period Cash at end of period ? ?
Prepare a statement of cash flows - indirect method The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheet December 31 2021 2020 Assets Cash $38 000 $20 000 Accounts Receivable 30 000 14 000 Inventory Equipment Accumulated depreciation--equipment Total 27 000 20 000 60 000 78 000 -24 000 $108 000 -29 000 $126 000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable $24 000 $15 000 7 000 8 000 27 000 33 000 Common stock 18 000 14 000 50 000 $126 000 Retained earnings 38 000 Total $108 000 NOSKER COMPANY Income Statement For the Year ended December 31, 2021 Sales revenue $242 000 Cost of goods sold Gross profit Operating expenses Income from operations Interest expense 175 000 67 000 24 000 43 000 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. Instructions Prepare a statement of cash flows using the indirect method.
Transcribed Image Text:Prepare a statement of cash flows - indirect method The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheet December 31 2021 2020 Assets Cash $38 000 $20 000 Accounts Receivable 30 000 14 000 Inventory Equipment Accumulated depreciation--equipment Total 27 000 20 000 60 000 78 000 -24 000 $108 000 -29 000 $126 000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable $24 000 $15 000 7 000 8 000 27 000 33 000 Common stock 18 000 14 000 50 000 $126 000 Retained earnings 38 000 Total $108 000 NOSKER COMPANY Income Statement For the Year ended December 31, 2021 Sales revenue $242 000 Cost of goods sold Gross profit Operating expenses Income from operations Interest expense 175 000 67 000 24 000 43 000 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. Instructions Prepare a statement of cash flows using the indirect method.
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