Problem 12-7A Presented below are the financial statements of Wildhorse Company Wildhorse Company Comparative Balance Sheets December 31 2017 Assets 2016 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total $ 41,300 23,600 33,040 70,800 (37,760 ) $130,980 $ 23,600 16,520 23,600 92,040 (28,320) $127,440 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 22,420 8,260 20,060 21,240 59,000 $130,980 $ 17,700 9,440 38,940 16,520 44,840 $127,440 Wildhorse Company Income Statement For the Year Ended December 31, 2017 $285,560 206,500 79,060 $21,240 7,080 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net Income 28,320 50,740 3,540 47,200 9.440 $ 37.760 Additional data: 1. Depreciation expense was $20,650. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesis Wildhorse Company Statement of Cash Flows For the Year Ended December 31, 2017 : Cash Flows from Operating Activities T Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : Depreciation Expense Increase in Accounts Payable T increase in Inventory 19:40 Increase in Accounts Receivable ! 7080 Decrease in Income Taxes Payable 1180 1180 Net Cash Provided by Operating Activities + 1 45430 TCash Flows from Investing Activities : Sale of Equipment 10039 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesis Wildhorse Company Statement of Cash Flows For the Year Ended December 31, 2017 : Cash Flows from Operating Activities T Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : Depreciation Expense Increase in Accounts Payable T increase in Inventory 19:40 Increase in Accounts Receivable ! 7080 Decrease in Income Taxes Payable 1180 1180 Net Cash Provided by Operating Activities + 1 45430 TCash Flows from Investing Activities : Sale of Equipment 10039