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  3. problem 138a presented below are the financial statements of nosker...

Question: problem 138a presented below are the financial statements of nosker...

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Problem 13-8A Presented below are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2015 $38,000 30,000 27,000 60,000 (29,000) 2014 $20,000 14,000 20,000 78,000 (24,000) Total $126,000 $108,000 Liabilities and Stockholders Equit Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $24,000 7,000 27,000 18,000 50,000 $126,000 $ 15,000 8,000 33,000 14,000 38,000 $108,000 Total NOSKER COMPANY ncome 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 $242,000 175,000 67,000 24,000 43,000 3.000 40,000 8,000 $32,000Additional 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. 3. All depreciation expense, $14,500, 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. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 Nosker Company Statement of Cash Flows For the Year Ended December 31, 2015 Less cash payments Compute free cash flow. Free cash flow $

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