Prepare a statement of cash flows for Nosker Company using the direct method: NOSKER COMPANY Comparative Balance
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NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $37,300 $19,100 Accounts receivable 32,700 18,200 Inventory 21,000 77,700 29,600 Equipment 59,300 Accumulated depreciation (29,800) (23,000) -equipment Total $129,100 $113,000 Liabilities and Stockholders' Equity Accounts payable $28,300 $ 16,200 Income taxes payable 7,000 8,500 Bonds payable 26,900 32,400 19,000 47,900 Common stock 13,300 Retained earnings 42,600 Total $129,100 $113,000 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit $242,700 176,600 66,100 Operating expenses 23,600 Income from operations 42,500 Interest expense 2,300 Income before income taxes 40,200 Income tax expense 8,800 Net income $31,400 Additional data: 1. Dividends declared and paid were $26,100. 2. During the year, equipment was sold for $9,500 cash. This equipment cost $18,400 originally and had a book value of $9,500 at the time of sale. 3. All depreciation expense, $15,700, 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. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $37,300 $19,100 Accounts receivable 32,700 18,200 Inventory 21,000 77,700 29,600 Equipment 59,300 Accumulated depreciation (29,800) (23,000) -equipment Total $129,100 $113,000 Liabilities and Stockholders' Equity Accounts payable $28,300 $ 16,200 Income taxes payable 7,000 8,500 Bonds payable 26,900 32,400 19,000 47,900 Common stock 13,300 Retained earnings 42,600 Total $129,100 $113,000 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit $242,700 176,600 66,100 Operating expenses 23,600 Income from operations 42,500 Interest expense 2,300 Income before income taxes 40,200 Income tax expense 8,800 Net income $31,400 Additional data: 1. Dividends declared and paid were $26,100. 2. During the year, equipment was sold for $9,500 cash. This equipment cost $18,400 originally and had a book value of $9,500 at the time of sale. 3. All depreciation expense, $15,700, 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.
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Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
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