Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement for Wildhorse Limited is presented here: WILDHORSE LIMITED Income Statement Year Ended December 31, 2018 Service revenue $995,000 Operating expenses 717,000 Income
The income statement for Wildhorse Limited is presented here: WILDHORSE LIMITED Income Statement Year Ended December 31, 2018 Service revenue $995,000 Operating expenses 717,000 Income from operations 278,000 Interest expense 77,000 Income before income tax 201,000 Income tax expense 50,250 Net income $150,750 Wildhorse's statement of financial position contained these comparative data at December 31: Accounts receivable Prepaid expenses Accounts payable Salaries payable Unearned revenue Interest payable Income tax payable 2018 $56,800 12,300 35,300 19,100 12,900 2017 $46,300 15,800 40,200 20,000 8,300 4,200 9,350 6,500 4,000 Additional information: 1. Operating expenses include depreciation expense, $40,000) amortization expense, $16.500 administrative expenses. $119.000; salaries expense, $507,500; and oss on the disposal of equipment, $26,000 2. Unearned revenue is received from customers 3. Prepaid expenses and accounts payable relate to operating administrative) expenses. Prepare the operating activities section of the statement of cash flows, using the direct method. Show amounts that decrease cash flow with other a-si -15.000 or in parenthesis (15.000).) WILDHORSE UNITED Stalent of Cash Flows (Partial) Direct Method Year Ended December 31, 2018 - Operating activities T Cash receipts from customers Cash payments TTo employees Forning Net cash provided by rating activities
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