Condensed financial data of Wildhorse Co. follow.

Wildhorse Co.

Comparative Balance Sheets

December 31

Assets

2020

2019

Cash$119,000

$47,100

Accounts receivable93,000

32,400

Inventory113,000

102,400

Prepaid expenses29,100

25,700

Investments

139,500

114,700

Equipment

264,800

241,800

Accumulated depreciation-equipment

(46,500

)

(51,700

)

Total$711,900

$512,400

Liabilities and Stockholders' Equity

Accounts payable$111,500

$67,600

Accrued expenses payable16,400

17,100

Bonds payable114,000

149,300

Common stock219,100

174,200

Retained earnings250,900

104,200

Total$711,900

$512,400

Wildhorse Co.

Income Statement

For the Year Ended December 31, 2020

Sales revenue$391,400Less:Cost of goods sold$134,700

Operating expenses, excluding depreciation12,000

Depreciation expense32,300

Income tax expense

26,800

Interest expense4,700

Loss on disposal of plant assets

7,500

218,000Net income$173,400

Additional information:

1.New equipment costing $80,700was purchased for cash during the year.2.Old equipment having an original cost of $57,700 was sold for $12,700 cash.3.Bonds matured and were paid off at face value for cash.4.A cash dividend of $26,700was declared and paid during the year.

statement of cash flows using the indirect method. (