Presented below is the comparative Daian and 2023: WILDHORSE INC. Balance Sheet December 31 Assets Cash 2024 2023 $83,080 $121,520 Accounts receivable 125,240 93,000 Inventory 254,200 192,820 Long-term investment 125,860 0 Property, plant, and equipment 663,400 570,400 Accumulated depreciation (201,500) (173,600) Total assets $1,050,280 $804,140 Liabilities and Shareholders' Equity Accounts payable $71,300 $58,280 Dividends payable 7,440 0. Income tax payable 17,360 18,600 Long-term notes payable 31,000 Common shares 781.200 651,000 Common shares 781,200 651,000 Retained earnings 141,980 76,260 Total liabilities and shareholders equity $1,050,280 $804,140 WILDHORSE INC. Income Statement Year Ended December 31, 2024 Sales $822,120 Cost of goods sold 535,680 Gross profit 286,440 Operating expenses $182,900 Loss on sale of equipment 3,720 186,620 Profit from operations 99,820 Interest expense 3,720 Interest revenue (5.580) (1,860) Profit before income tax 101,680 Income tax expense 17,360 Profit for the year $84,320 Additional information: 1. Cash dividends of $18,600 were declared. 2. A long-term investment was acquired for cash at a cost of $125,860. 3. 4. 5. Depreciation expense is included in the operating expenses. The company issued 13,020 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $37,200 was sold during the year for cash. The equipment had a carrying value of $11,160 at the time of sale. The company issued a note payable for $34,720 and repaid $3,720 by year end. 6. 7. All purchases of inventory are on credit. 8. Accounts payable is used only to record purchases of inventory. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis eg. (15,000).) WILDHORSE INC. Cash Flow Statement - Direct Method Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a sign eg.-15,000 or in parenthesis eg. (15,000)) WILDHORSE INC. Cash Flow Statement - Direct Method > <