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The comparative unclassified statement of financial position for Wildhorse Ltd. follows: WILDHORSELTD. Statement of Financial Position December 31 Assets 2021 2020 Cash $50,000 $28,000 Accounts
The comparative unclassified statement of financial position for Wildhorse Ltd. follows: WILDHORSELTD. Statement of Financial Position December 31 Assets 2021 2020 Cash $50,000 $28,000 Accounts receivable 89,000 76,500 Inventory 175,000 190,000 Estimated inventory returns 6,000 3,000 Long-term investments 78,000 110,000 Equipment 260,000 158,000 Accumulated depreciation (80,000) (39,000) Total assets $578,000 $526,500 Liabilities and Shareholders' Equity Accounts payable $33,000 $ 39,000 Refund liability 9,000 6,000 Bank loan payable (noncurrent) 102,000 177,500 Common shares 217,000 172,000 Retained earnings 217,000 132,000 Total liabilities and shareholders' equity $578,000 $526,500 Additional information pertaining to 2021: 1. Net income was $103,400. 2. Sales were $972,000. 3. Cost of goods sold was $750,000. 4. Operating expenses were $42,000, exclusive of depreciation expense. 5. Depreciation expense was $41,000. 6. Interest expense was $19,000. 7. Income tax expense was $22,000. 8. Long-term investments were sold at a gain of $5,400. 9. No equipment was sold during the year. 10. $75,500 of the bank loan was repaid during the year. 11. Common shares were issued for $45,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) WILDHORSE LTD. Statement of Cash Flows-Indirect Method December 31, 2021 Cash flows from operating activities Net income $ 103400 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense GA -41000 Loss on sale of long-term investments Decrease in accounts receivable Increase in inventory Increase in inventory Proceeds from sale of long-term investments Net cash provided by operating activities Cash flows from investing activities $
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