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Compute free cash flow. The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $
Compute free cash flow.
The following are the financial statements of Nosker Company.
NOSKER COMPANY | ||||||
Assets | 2017 | 2016 | ||||
Cash | $ 37,100 | $ 20,100 | ||||
Accounts receivable | 32,900 | 19,500 | ||||
Inventory | 29,900 | 20,900 | ||||
Equipment | 59,700 | 77,500 | ||||
Accumulated depreciation—equipment | (29,100 | ) | (23,400 | ) | ||
Total | $130,500 | $114,600 | ||||
Liabilities and Stockholders’ Equity | ||||||
Accounts payable | $ 28,300 | $ 17,000 | ||||
Income taxes payable | 7,000 | 8,400 | ||||
Bonds payable | 27,300 | 33,600 | ||||
Common stock | 17,200 | 14,600 | ||||
Retained earnings | 50,700 | 41,000 | ||||
Total | $130,500 | $114,600 |
NOSKER COMPANY | ||
Sales revenue | $241,100 | |
Cost of goods sold | 176,400 | |
Gross profit | 64,700 | |
Operating expenses | 23,400 | |
Income from operations | 41,300 | |
Interest expense | 3,600 | |
Income before income taxes | 37,700 | |
Income tax expense | 8,600 | |
Net income | $ 29,100 |
Additional data:
1. | Dividends declared and paid were $19,400. | |
2. | During the year equipment was sold for $9,800 cash. This equipment cost $17,800 originally and had a book value of $8,000 at the time of sale. | |
3. | All depreciation expense, $13,700, is in the operating expenses. | |
4. | All sales and purchases are on account. |
NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 # Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Depreciation Expense Cash Flows from Investing Activities Sale of Equipment + Net Increase in Cash Cash at Beginning of Period Cash at End of Period # Net Cash Provided by Operating Activities : # Cash Flows from Financing Activities Issuance of Common Stock Payment of Dividends Redemption of Bonds Net Cash Used by Financing Activities : # # # # # + -13400 -9000 11300 -1400 13700 2600 -19400 -6300 29100 1200 30300 9800 -23100 17000 20100 37100
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