Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 9 Condensed financial data of Wildhorse Co. follow. Wildhorse Co. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $119,000 $47,100 Accounts receivable 93,000
Question 9 Condensed financial data of Wildhorse Co. follow. Wildhorse Co. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $119,000 $47,100 Accounts receivable 93,000 32,400 Inventory 113,000 102,400 Prepaid expenses 29,100 25,700 Investments 139,500 114,700 Equipment 264,800 241,800 Accumulated depreciation equipment (46,500) (51,700) Total $711,900 $512,400 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,500 $67,600 16,400 17,100 114,000 149,300 219,100 174,200 250,900 104,200 $711,900 $512,400 $391,400 Wildhorse Co. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $134,700 Operating expenses, excluding depreciation 12,000 Depreciation expense 32,300 Income tax expense 26,800 Interest expense 4,700 $391,400 Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $134,700 Operating expenses, excluding depreciation 12,000 Depreciation expense 32,300 Income tax expense 26,800 Interest expense 4,700 Loss on disposal of plant asse 7,500 Net income 218,000 $173,400 Additional information: 1. New equipment costing $80,700 was purchased for cash during the year. 2. Old equipment having an original cost of $57,700 was sold for $12,700 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $26,700 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that Wildhorse Co. Statement of Cash Flows Adjustments to reconcile net income to
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started