Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Presented here are the financial statements of Wildhorse Company. Wildhorse Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,100 $20,100 Accounts receivable 32,900

Presented here are the financial statements of Wildhorse Company.

Wildhorse Company Comparative Balance Sheets December 31

Assets

2022

2021

Cash

$37,100

$20,100

Accounts receivable

32,900

19,500

Inventory

29,900

20,900

Property, plant, and equipment

59,700

77,500

Accumulated depreciation

(29,100

)

(23,400

)

Total

$130,500

$114,600

Liabilities and Stockholders Equity

Accounts payable

$28,300

$17,000

Income taxes payable

7,000

8,400

Bonds payable

27,300

33,600

Common stock

17,200

14,600

Retained earnings

50,700

41,000

Total

$130,500

$114,600

Wildhorse Company Income Statement For the Year Ended December 31, 2022

Sales revenue

$241,100

Cost of goods sold

176,400

Gross profit

64,700

Selling expenses

$17,550

Administrative expenses

5,850

23,400

Income from operations

41,300

Interest expense

3,600

Income before income taxes

37,700

Income tax expense

7,540

Net income

$30,160

Additional data:

1. Depreciation expense was $15,700.
2. Dividends declared and paid were $20,460.
3. During the year equipment was sold for $7,800 cash. This equipment cost $17,800 originally and had accumulated depreciation of $10,000 at the time of sale.
4. Bonds were redeemed at their carrying value.
5.

Common stock was issued at par for cash.

Compute free cash flow. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Free cash flow

$Enter the free cash flow dollar amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting Students Manual

Authors: Colin Drury

6th Edition

184480030X, 978-1844800308

More Books

Students also viewed these Accounting questions