Problem 23-9 Your answer is partially correct. Try again Wildhorse Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information December 31 2017 2016 Cash $38,400 $12,800 Accounts receivable 12,300 10,000 12,100 Inventory 10,000 3,000 Equity investments 0 Buildings 29,600 0 39,700 20,100 Equipment 5,000 Copyrights 5,200 107,500 $90,700 Totals Allowance for doubtful accounts $2,900 $4,400 Accumulated depreciation-equipment 2,100 4,500 Accumulated depreciation-buildings 0 6,000 Accounts payable 5,000 4,000 Dividends payable 0 5,100 Notes payable, short-term (nontrade) 3,000 4,000 Long-term notes payable 25,000 36,000 33,000 Common stock 38,000 Retained earnings 20,500 4,700 $107,500 $90,700 Additional data related to 2017 are as follows 1. Equipment that had cost $11,200 and was 30% depreciated at time of disposal was sold for $2,600. 2. $5,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,100 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,700 (net of $4,000 taxes). 5. Equity investments (ownership is less than 20% of total shares) were sold at $1,500 above ther cost. No unrealized gains or losses were recorded in 2017, 6. Cash and long-term note for $16,000 were given for the acquisition of equipment. 7. Interest of $2,000 and income taxes of $5,000 were paid in cash. (a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Wildhorse. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WILDHORSE CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 15800 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 1160 Depreciation Expense 5240 Loss on Sale of Equipment Gain on Sale of Investment -1500 Gain on Sale of Investment 9100 Cash Paid During the Year for Interest 2000 Increase in Accounts Receivable (Net) -3800 Increase in Accounts Payable 1000 1000 Payment of Short-term Notes Payablee 8100 Net Cash Provided by Operating Activities 7700 Cash Flows from Investing Activities Sale of Equipment 2600 Purchase of Equipment (Cash) 14800 Proceeds from Flood Damage to Building 4500 32700 Increase in Inventory 25000 Net Cash Provided by Investing ActivitiesY Cash Flows from Financing Activities Payment of Dividends 5100 2000 Cash Paid During the Year for Interest Net Cash Used by Financing Activities 7100 25600 12800 38400 25600 12800 38400 Supplemental disclosures of cash flow information NNNNNNNUNNrrsrwwssUUUNNNNN