Problem 17-8A (Part Level Submission)

Presented below are the financial statements of Nosker Company.

NOSKER COMPANY Comparative Balance Sheets December 31
Assets		2014			2013
Cash		$35,330			$20,260
Accounts receivable		32,230			18,050
Inventory		26,460			20,630
Equipment		59,710			77,780
Accumulated depreciationequipment		(30,000	)		(23,020	)
Total		$123,730			$113,700
Liabilities and Stockholders Equity
Accounts payable		$28,210			$ 16,810
Income taxes payable		7,040			8,070
Bonds payable		27,820			33,450
Common stock		18,590			13,940
Retained earnings		42,070			41,430
Total		$123,730			$113,700

NOSKER COMPANY Income Statement For the Year Ended December 31, 2014
Sales revenue		$241,090
Cost of goods sold		175,960
Gross profit		65,130
Operating expenses		24,210
Income from operations		40,920
Interest expense		2,770
Income before income taxes		38,150
Income tax expense		7,720
Net income		$30,430

Additional data:

1.		Dividends declared and paid were $29,790.
2.		During the year equipment was sold for $8,480 cash. This equipment cost $18,070 originally and had a book value of $8,480 at the time of sale.
3.		All depreciation expense, $16,570, 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. Prepare a statement of cash flows for nosker company using the direct method