Question
The income statement ofWildhorseCompany is shown below: WILDHORSECOMPANY Income Statement For the Year Ended December 31, 2022 Sales$8,720,000Cost of goods sold5,470,000Gross profit3,250,000Operating expensesSelling and administrative
The income statement ofWildhorseCompany is shown below:
WILDHORSECOMPANY
Income Statement
For the Year Ended December 31, 2022Sales$8,720,000Cost of goods sold5,470,000Gross profit3,250,000Operating expensesSelling and administrative expenses$1,260,000Depreciation expense88,000Amortization expense43,0001,391,000Net income$1,859,000
Additional information:1.Accounts receivable increased $613,000during the year.2.Inventory increased $326,000during the year.3.Prepaid expenses increased $185,000during the year.4.Accounts payable to merchandise suppliers increased $126,000during the year.5.Accrued expenses payable increased $189,000during the year.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2022, forWildhorseCompany, using the direct method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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