Problem 13-7A (Part Level Submission) Presented below are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2015 Cash $34,440 Accounts receivable 32,740 Inventory 26,900 Equipment 59,520 Accumulated depreciation-equipment (29,940 ) Total $123,660 2014 $19,420 18,620 20,940 77,380 (23,580 ) $112,780 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,190 7,430 27,000 17,080 43,960 $123,660 $ 16,030 8,450 33,520 13,150 41,630 $112,780 NOSKER COMPANY Income Statement For the Year Ended December 31, 2015 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,350 175,560 65,790 23,040 42,750 2,830 39,920 7,470 $32,450 Additional data: 1. Dividends declared and paid were $30,120. 2. During the year equipment was sold for $7,530 cash. This equipment cost $17,860 originally and had a book value of $7,530 at the time of sale. 3. All depreciation expense, $16,690, is in the operating expenses. 4. All sales and purchases are on account. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Adjustments to reconcile net income to