The following is a comparative statement of financial position and income statement forWildhorseCorporation:

ration: on and income statement for Wildhorse Wildhorse Corporation Balance Sheet Assets As at September 30 Cash 2021 2020 Accounts receivable $96,000 $128,000 Merchandise inventory 106,000 80,000 Prepaid expenses 111,000 Long-term investments 24,000 226,000 18,000 Equipment 251,000 122,000 Less: Accumulated depreciation 1,406,000 1,308,000 (519,000) (451,000) Liabilities and Shareholders' Equity $1,475,000 $1,431,000 Accounts payable Income tax payable $75,000 $83,000 Bonds payable 21,000 14,000 Common shares 900,000 946,000 201,000 141,000 Retained earnings 278,000 247,000 $1,475,000 $1,431,000 Wildhorse Corporation Income Statement For the Year Ended September 30, 2021 Sales $896,000 Cost of goods sold 624,000 Gross profit 272,000 Operating expenses 185,000 Income from operations 87,000 Interest expense 2,000 Gain on disposal of equipment 2,000 Income before income tax 87,000 Income tax expense 34,000 Profit $53,000 ADDITIONAL INFORMATION: Depreciation expense is included in operating expenses. During the year, equipment that originally cost $101,000 was sold for cash. The equipment was 60% depreciated at the time of the sale. Long-term investments were purchased for cash during the year. Prepare a statement of cash flows, in good form, for Wildhorse Corporation, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or inWildhorse Corporation Statement of Cash Flows For the Year Ended September 30, 2021 Operating Activities Profit Adjustment to reconcile profit to $ 53000.00 net cash provided by operating activities: Depreciation Expense 128600.00 Increase in Accounts Receivable -26000.00 Gain on Disposal of Equipment -2000.00 Increase in Prepaid Expenses -6000.00 Decrease in Merchandise Inventory 115000.00 Decrease in Accounts Payable -8000.00 Increase in Income Taxes Payable 17000.00 208600.00 Net Cash Provided by Operating Activities 261600.00 Investing Activities Purchase of Equipment -199000.00 Proceeds from Sale of Equipment 42400.00 Purchase of Long-Term Investment -129000.00 Net Cash Used by Investing Activities 1-285600.00 Financing Activities Repaid Bonds Payable) 1-46000.00 Issued Common Shares 60000.00 Paid Dividends 1-22000.00 Net Cash Used by Financing Activities -8000.00 Decrease in Cash -32000.00 Cash Balance, Beginning of Year 128000.00 $ 96000.00