Problem 17-7a – nosker company – statement of cash flows

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Problem 17-7A (Part Level Submission)

The following are the financial statements of Nosker Company.

NOSKER COMPANY
Comparative Balance Sheets
December 31

Assets

 

2017

 

2016

Cash

 

$36,900

   

$20,000

 

Accounts receivable

 

32,700

   

18,300

 

Inventory

 

29,100

   

20,000

 

Equipment

 

59,600

   

78,000

 

Accumulated depreciation—equipment

 

(29,700

)

 

(23,000

)

   Total

 

$128,600

 

 

$113,300

 

             

Liabilities and Stockholders’ Equity

           

Accounts payable

 

$28,400

   

$ 16,700

 

Income taxes payable

 

7,200

   

8,200

 

Bonds payable

 

26,200

   

32,700

 

Common stock

 

17,200

   

13,900

 

Retained earnings

 

49,600

 

 

41,800

 

   Total

 

$128,600

 

 

$113,300

 

 

NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017

Sales revenue

 

$241,500

Cost of goods sold

 

176,500

Gross profit

 

65,000

Operating expenses

 

23,400

Income from operations

 

41,600

Interest expense

 

3,400

Income before income taxes

 

38,200

Income tax expense

 

7,000

Net income

 

$31,200


Additional data:

1.

 

Dividends declared and paid were $23,400.

2.

 

During the year equipment was sold for $9,800 cash. This equipment cost $18,400 originally and had a book value of $9,800 at the time of sale.

3.

 

All depreciation expense, $15,300, is in the operating expenses.

4.

 

All sales and purchases are on account.