Answer:
Preparation of Cash flow statement is below:-
Step-by-step explanation:
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The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation—equipment (29,800 ) (23,700 ) Total $130,000 $113,100 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,100 Income taxes payable 7,100 8,000 Bonds payable 26,300 32,500 Common stock 18,200 13,600 Retained earnings 49,700 42,900 Total $130,000 $113,100 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200. Prepare a statement of cash flows for Nosker Company using the direct method.
Nosker Company
Statement of cash flow
For the year ended 31 December, 2017
Cash flow from operating activities
Receipt from customers $228,300
($242,100 - $13,800)
Less Cash payment
Suppliers $173,500
($175,500 + $10,600 - $12,600)
Operating expenses $8,300
(23,900 - $15,600)
Income tax expenses $900
($8,100 + $900)
Interest expenses $35,100
Cash flow from investing activities
Sale of equipment $8,700
Net cash provided by Investing activities $8,700
Cash flow from financing activities
Issuance of company stock $4,600
Less: Land Redemption $6,200
Less: Payment of cash dividend $25,400
Net cash used by financing activities $27,000
Net Increase in cash $16,800
Beginning cash $19,600
Cash at end of period $36,400