Data for Nosker Company are presented in bellow.

1. Dividends declared and paid were $20,000.
2. During the year equipment wassold for $8,500 cash. This equipment coast $18,000 originally and had a book value of $8,500 is in the operating expenses
3. All depreciation expense $14,500 is in the operating expenses
4. All sales and purchasers and on account.

1. Accounts payable pertain to merchandise suppliers.
2. All operating expenses except for depreciation were paid in cash

Instructions

1. Prepare a statement of cash flows for Nosker Company using the direct method.
2. Compute free cash flow

Solution