NOSKER COMPANY Comparative Balance Sheets

NOSKER COMPANYComparative Balance SheetsDecember 31Assets20142013Cash$34,150$19,060Accounts receivable32,83019,540Inventory26,59020,460Equipment59,11077,680Accumulated depreciation—equipment(29,250)(23,810) Total$123,430$112,930Liabilities and Stockholders’ EquityAccounts payable$28,990$ 16,680Income taxes payable7,4608,110Bonds payable26,32033,270Common stock17,70014,220Retained earnings42,96040,650 Total$123,430$112,930NOSKER COMPANYIncome StatementFor the Year Ended December 31, 2014Sales revenue$241,930Cost of goods sold176,270Gross profit65,660Operating expenses24,240Income from operations41,420Interest expense3,360Income before income taxes38,060Income tax expense8,000Net income$30,060Additional data:1.Dividends declared and paid were $27,750.2.During the year equipment was sold for $7,810 cash. This equipment cost $18,570 originally and had a book value of $7,810 at the time of sale.3.All depreciation expense, $16,200, is in the operating expenses.4.All sales and purchases are on account.Further analysis reveals the following.1.Accounts payable pertain to merchandise suppliers.2.All operating expenses except for depreciation were paid in cash.(a)Prepare a statement of cash flows for Nosker Company using the direct method.Prepare a statement of cash flows for Nosker Company using the direct method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)Nosker CompanyStatement of Cash FlowsFor the Year Ended December 31, 2014 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash For Operating Expenses Increase in Inventory For Income Taxes Sale of Equipment Issuance of Common Stock Increase in Accounts Receivable Decrease in Inventory Redemption of Common Stock Net Income Purchase of Equipment For Interest Decrease in Income Taxes Payable Depreciation Expense Increase in Income Taxes Payable Decrease in Accounts Receivable Issuance of Bonds Redemption of Bonds Payment of Dividends Cash Receipts from Customers To Suppliers Increase in Accounts Payable Decrease in Accounts Payable$ Less cash payments: Cash Receipts from Customers Sale of Equipment For Income Taxes Decrease in Accounts Receivable Redemption of Bonds For Operating Expenses Redemption of Common Stock Increase in Income Taxes Payable Increase in Inventory Payment of Dividends Purchase of Equipment To Suppliers Net Income For Interest Depreciation Expense Issuance of Bonds Increase in Accounts Payable Decrease in Inventory Increase in Accounts Receivable Decrease in Accounts Payable Decrease in Income Taxes Payable Issuance of Common Stock$ Decrease in Inventory For Interest Decrease in Accounts Receivable Issuance of Common Stock Sale of Equipment Issuance of Bonds Decrease in Income Taxes Payable Payment of Dividends Increase in Accounts Receivable Cash Receipts from Customers For Operating Expenses Purchase of Equipment Redemption of Bonds For Income Taxes Increase in Accounts Payable Increase in Income Taxes Payable Decrease in Accounts Payable Net Income Depreciation Expense Redemption of Common Stock Increase in Inventory To Suppliers Purchase of Equipment Redemption of Common Stock Payment of Dividends Decrease in Accounts Receivable For Operating Expenses Cash Receipts from Customers To Suppliers For Interest For Income Taxes Issuance of Common Stock Net Income Issuance of Bonds Increase in Income Taxes Payable Depreciation Expense Decrease in Inventory Decrease in Income Taxes Payable Increase in Accounts Payable Redemption of Bonds Sale of Equipment Decrease in Accounts Payable Increase in Inventory Increase in Accounts Receivable Decrease in Income Taxes Payable To Suppliers Net Income Decrease in Accounts Payable Payment of Dividends For Income Taxes Redemption of Bonds Depreciation Expense Increase in Accounts Payable Cash Receipts from Customers Redemption of Common Stock Increase in Income Taxes Payable Issuance of Bonds Sale of Equipment For Operating Expenses For Interest Increase in Inventory Decrease in Inventory Increase in Accounts Receivable Decrease in Accounts Receivable Purchase of Equipment Issuance of Common Stock Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Net Income Increase in Income Taxes Payable To Suppliers Cash Receipts from Customers Decrease in Income Taxes Payable Redemption of Common Stock Depreciation Expense Issuance of Common Stock Increase in Inventory Decrease in Accounts Receivable Issuance of Bonds Decrease in Accounts Payable Increase in Accounts Payable Decrease in Inventory For Interest For Income Taxes For Operating Expenses Increase in Accounts Receivable Sale of Equipment Purchase of Equipment Redemption of Bonds Payment of Dividends Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Redemption of Common Stock Payment of Dividends Sale of Equipment Increase in Inventory Issuance of Common Stock Issuance of Bonds Decrease in Accounts Receivable Redemption of Bonds For Operating Expenses Depreciation Expense Purchase of Equipment To Suppliers Cash Receipts from Customers For Interest For Income Taxes Net Income Increase in Accounts Payable Increase in Income Taxes Payable Decrease in Accounts Payable Increase in Accounts Receivable Decrease in Income Taxes Payable Decrease in Inventory Issuance of Common Stock Redemption of Common Stock Increase in Accounts Payable Sale of Equipment Decrease in Inventory Increase in Income Taxes Payable Purchase of Equipment Increase in Inventory For Operating Expenses Cash Receipts from Customers For Interest For Income Taxes Decrease in Accounts Payable Issuance of Bonds Increase in Accounts Receivable Depreciation Expense To Suppliers Decrease in Accounts Receivable Payment of Dividends Redemption of Bonds Decrease in Income Taxes Payable Net Income Increase in Inventory For Income Taxes Decrease in Accounts Payable Decrease in Inventory To Suppliers Increase in Accounts Payable For Interest Decrease in Income Taxes Payable For Operating Expenses Redemption of Bonds Net Income Increase in Income Taxes Payable Depreciation Expense Sale of Equipment Increase in Accounts Receivable Decrease in Accounts Receivable Cash Receipts from Customers Purchase of Equipment Issuance of Common Stock Redemption of Common Stock Issuance of Bonds Payment of Dividends Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash