Condensed financial data follow for Wildhorse Ltd. E- Perform reports under ASPE. WILDHORSE LTD. Balance Sheet December 31 Assets 2017 2016 Cash $127,490 $46,300 Accounts receivable 77,300 45,000 Inventory 126,800 91,350 Prepaid expenses 37,100 28,900 Long-term investments 125,900 111,900 Property, plant, and equipment 263,900 243,400 Accumulated depreciation (53,500) (51,700) Total assets $ 704,990 $515,150 Liabilities and Shareholders' Equity Accounts payable $91,700 $76,000 Accrued expenses payable 12,000 Notes payable 109,200 135,700 Common shares 236,100 179,300 Retained earnings 255,990 116,650 Total liabilities and shareholders' equity $704,990 $515,150 7,500 WILDHORSE LTD. Income Statement WILDHORSE LTD. Income Statement Year Ended December 31, 2017 Sales $493,300 Cost of goods sold 184,200 Gross profit 309,100 Operating expenses $57,200 Depreciation expense 45,100 Loss on sale of equipment 8,140 110,440 Profit from operations 198,660 Other expenses Interest expense 4,590 Profit before income tax 194,070 Income tax expense 42,100 Profit $ 151,970 Additional information: 1. New equipment costing $80,500 was purchased for $27,900 cash and a $52,600 note payable. 2. Equipment with an original cost of $60,000 was sold at a loss of $8,140. 3. Notes payable matured during the year and were repaid. 4. A long-term investment was acquired for cash. 5. Accounts payable relate only to merchandise creditors. 6. Accrued expenses payable and prepaid expenses relate to operating expenses. Prepare the operating section of the cash flow statement using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 o 91-777 WILDHORSE LTD. Cash Flow Statement (Partial)-Direct Method Year Ended December 31, 2017 Operating Activities 615600 Cash Receipts from Customers Cash Payments To Suppliers 203950 For Income Tax For Interest ill For Operating Expenses 9 Net Cash Provided by Financing Activities