Using the indirect method P17-8A Data for Nosker Company are presented in P17-7A

Question

Using the indirect method P17-8A Data for Nosker Company are presented in P17-7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. nstructions a) Prepare a statement of cash flows for Nosker Company using the direct method. b) Compute free cash flow. 17-9A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 2016 2017 $ 80,800 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment $ 48,400 92,800 117,500 28,400 143,000 270,000 (50,000) $682,500 33,000 102,850 26,000 114,000 242,500 (52,000) $514,750 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $67,300 17,000 $112,000 16,500 110,000 220.000 224,000 150,000 175,000 105,450 $514,750 Total $682,500 S1ARE

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Indirect Cash Flow: Cash Flow from operating Activities Net Income 158900 Depreciation Expense 46500 Loss on disposal of plant asset 7500 Change in Current asset and current liabilities: Increase in Accounts Receivable -59800 Increase in inventory -14650 Increase in Prepaid Expense -2400 Increase in Accounts payable 44700 Decrease in Accrued Expense -500 Cash Flow provided by operating Activities 180250 Cash Flow from investing activities Purchase of investment -29000 Purchase of New Equipment -85000 Proceed from sale of equipment 1500 Cash Flow from investing activities -112500 Cash Flow from financing activities Sale of Capital Stock 45000 Sale of Bonds -40000 Dividend Paid -40350 Cash Flow from financing activities -35350 Net Increase/(Decrease) in cash 32400 Cash, beginning 48400 Cash Ending 80800

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