Problem 17-08A The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $36,600 $20,100 Accounts receivable 32,500 19,600 Inventory 30,100 20,100 Equipment 59,700 77,400 Accumulated depreciation—equipment (29,200 ) (23,000 ) Total $129,700 $114,200 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,800 Income taxes payable 7,400 8,400 Bonds payable 27,300 32,500 Common stock 17,700 13,000 Retained earnings 48,600 43,500 Total $129,700 $114,200 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $243,000 Cost of goods sold 176,000 Gross profit 67,000 Operating expenses 24,600 Income from operations 42,400 Interest expense 3,900 Income before income taxes 38,500 Income tax expense 8,800 Net income $29,700 Additional data: 1. Dividends declared and paid were $24,600. 2. During the year, equipment was sold for $8,900 cash. This equipment cost $17,700 originally and had a book value of $8,900 at the time of sale. 3. All depreciation expense, $15,000, 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.