da Ac- rekly The income statement and unclassified statement of financial position for Wildhorse, Inc. follow. WILDHORSE, INC. Statement of Financial Position December 31 Support Assets 2018 2017 Cash $48,500 Held for trading investments $100,000 120.000 Accounts receivable 114,500 42,700 Inventory 94,550 Prepaid expenses Equipment 76,000 122,700 19,000 316,000 (47,000 $706,700 Accumulated depreciation 27,800 295,000 (53,900 $569,150 Total assets Liabilities and Shareholders' Equity Accounts payable Accrued liabilities $93,500 12,000 131,200 220.000 Bank loan payable $77,200 7,100 185,850 175.000 Common shares Bank loan payable Common shares 131,200 220,000 250,000 185,850 175,000 124.000 Retained earnings Total liabilities and shareholders' equity $706,700 $569,150 WILDHORSE, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $5,500 Interest expense (4,720) Income before income tax Income tax expense Net income $536,000 186,900 349,100 116,400 232,700 780 233,480 45,000 $188,480 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $5,500 was recorded. 3. New equipment costing $81,000 was purchased for $21.400 cash and a $59.600 long-term bank loan payable. mont hinn nariginal art of O n cold for 10 100,00 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $5,500 was recorded. 3. New equipment costing $81,000 was purchased for $21.400 cash and a $59,600 long-term bank loan payable. 4. Old equipment having an original cost of $60,000 was sold for $1,800 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $47,000 of depreciation expense and a $4,300 loss on disposal of equipment. Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either - signes -15,000 or in parenthesises (15,000).) WILDHORSE, INC. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to ILUIL UIL JULLINI UI LITIUS, Ugu indirect method. (Show amounts that decrease cash flow wither (15,000)) e WILDHORSE, INC. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to by paying $21.400 cash Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing and issuing a $59.600 bank loan payable
