sare a statement of cash f et method, and compte 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 pro Operating expenses Income from operations Income before income taxes Income tax expense 2020 $ 38,000 30,000 27,000 Noker Company Income Statement For the Year Ended December 31, 2020 $126.000 $ 24,000 1,000 27,000 Instructions & Prepare a statement of cash flows using the indirect method. b. Compute free cash flow 18,000 50,000 $126,000 $342.000 175,000 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. 2019 $ 20,000 20,000 78,000 (24,000) $108.000 $ 15,000 Additional data 1. Dividends declared and paid were $20,000 2. During the year, exquipment 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 14,000 38,000 SI08.000 a Cash from operating activities $31,500
sare a statement of cash f et method, and compte 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 pro Operating expenses Income from operations Income before income taxes Income tax expense 2020 $ 38,000 30,000 27,000 Noker Company Income Statement For the Year Ended December 31, 2020 $126.000 $ 24,000 1,000 27,000 Instructions & Prepare a statement of cash flows using the indirect method. b. Compute free cash flow 18,000 50,000 $126,000 $342.000 175,000 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. 2019 $ 20,000 20,000 78,000 (24,000) $108.000 $ 15,000 Additional data 1. Dividends declared and paid were $20,000 2. During the year, exquipment 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 14,000 38,000 SI08.000 a Cash from operating activities $31,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
NOTE: Using INDIRECT Method (
Transcribed Image Text:Prepare a statement of cash f
indirect method, and compone free
Excel
P13.7A (LO 2, 3), AN The following are the financial statements of Nosker Company.
Nosker Company
Comparative Balance Sheets
December 31
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
$ 38,000
30,000
27,000
60,000
(29,000)
Nosker Company
Income Statement
For the Year Ended December 31, 2020
$126,000
$ 24,000
7,000
27,000
18,000
50,000
$126,000
Instructions
a. Prepare a statement of cash flows using the indirect method.
b. Compute free cash flow.
$242,000
175,000
67,000
24,000
43,000
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.
2019
$ 20,000
14,000
20,000
78,000
(24,000)
$108,000
$ 15,000
8,000
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.
33,000
14,000
38,000
$108,000
a. Cash from operating
activities $31,500
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