The questions are as followed:

1. How did Wildcat's capital structure change in 2021? How do you think this could affect their accounting decisions going forward?

2. What are your impressions of Wildcat's performance during 2021? Based on careful analysis of the financials, what would you say are the primary reasons for the company's performance?

3. Why do you think Wildcat may have begun repurchasing shares in late 2021? Would you expect Wildcat to pay dividends in the near future?

4. What is the status of Wildcat's cash holdings at the end of the year? Discuss at least three possible uses of their cash in 2022 (the following year) and make a recommendation.

2021 TRANSACTIONS AND BALANCE CHANGES Working Capital Accruals (except dividends) Total 12/31/21 after adjustment December 31, 2020 Depreciatio Note Stock Issuance Purch of Building Lease of Equipmen t Sale of Building Share Repurchase S Sale of Equipment Amortization December 31, 2021 n S Change $ s 462,065 15,785 (200,000) 600,000 360,000 (80,000) (110,500) (124,215) 7,840 225,290 $ 907,350 $ 23,625 $ 445,300 $ 1,376,275 S 907,350 $ 23,625 $ 445.300 $ 1,376,275 S S $ S 445.285 7,840 225,290 220,010 697,860 S ASSETS Current assets Cash Accounts receivable ACCOU Inventory Total current assets Property, plant & equip. Building Less: Accumulated depreciation (Building) 503. Equipment Less: Accumulated depreciation (Equipment) Right-of-use Asset Less: Accumulated Amortization (ROU Asset) Total property, plant & equipment Total assets 1,400,000 (485,000) 1,800,000 (45,000) (1,400,000) 530,000 1,800,000 (45,000) (45,000) 520,000 (520,000) 201,250 $ 1,800,000 $ (45,000) $ S $ 218,843 $ (54,711) S $ S $ $ $ (185,000) (16,250) 400,000 440,000 (520,000) 185,000 218,843 (54,711) 218,843 (54,711) 218,843 (54,711) $ 1,919,132 $ 3,295,407 $ 1,250,000 $ 1,947,860 106,190 (18,065) S s S $ 88,125 10,413 $ $ 88,125 10,413 $ S (18,065) 10,413 10,413 LIABILITIES Current liabilities Accounts Payable Interest Payable Long-term liabilities Notes Payable Less: Discount on Notes Payable Lease Liability Total liabilities 2,000,000 (400,000) 20,000 $ 2,000,000 $ (380,000) $ 138,843 $ 2,000,000 $ (380,000) $ 138,843 $ 1,857,381 $ $ $ 2,000,000 (380,000) 138,843 138,843 S 106,190 S 4,500 18,000 S STOCKHOLDERS' EQUITY Common Stock, $1 par APIC - excess of par Treasury Stock Retained earnings Total stockholders' equity Total Liabilities and equity $ S 65,500 $ 1,618,000 $ (310,500) $ 65,025.96 61,000 1,600,000 (200,000) 380,670 $ 1,841,670 $ 1,947,860 (110,500) 4,500 18,000 (110,500) (315,644) s 126,980 (61,250) (22,500) $ 65,500 $ 1,618,000 $ (310,500) $ 65,026 $ 1,438,026 S 3,295,407 (45,000) (20,000) (270,000) 41,250 (65,124) $ Assets Liab and Equity $ 108,915 $ 108,915 $ (61,250) $ (61,250) $ $ $ 1,555,000 $ 1,555,000 $ $ $ 270,000) $ 270,000) $ $ 41,250 41,250 $ 84,132 $ 84,132 $ (110,500) $ (110,500) $ 4,671,682 $ 3,295,407 + 4 2021 TRANSACTIONS AND BALANCE CHANGES Working Capital Accruals (except dividends) Total 12/31/21 after adjustment December 31, 2020 Depreciatio Note Stock Issuance Purch of Building Lease of Equipmen t Sale of Building Share Repurchase S Sale of Equipment Amortization December 31, 2021 n S Change $ s 462,065 15,785 (200,000) 600,000 360,000 (80,000) (110,500) (124,215) 7,840 225,290 $ 907,350 $ 23,625 $ 445,300 $ 1,376,275 S 907,350 $ 23,625 $ 445.300 $ 1,376,275 S S $ S 445.285 7,840 225,290 220,010 697,860 S ASSETS Current assets Cash Accounts receivable ACCOU Inventory Total current assets Property, plant & equip. Building Less: Accumulated depreciation (Building) 503. Equipment Less: Accumulated depreciation (Equipment) Right-of-use Asset Less: Accumulated Amortization (ROU Asset) Total property, plant & equipment Total assets 1,400,000 (485,000) 1,800,000 (45,000) (1,400,000) 530,000 1,800,000 (45,000) (45,000) 520,000 (520,000) 201,250 $ 1,800,000 $ (45,000) $ S $ 218,843 $ (54,711) S $ S $ $ $ (185,000) (16,250) 400,000 440,000 (520,000) 185,000 218,843 (54,711) 218,843 (54,711) 218,843 (54,711) $ 1,919,132 $ 3,295,407 $ 1,250,000 $ 1,947,860 106,190 (18,065) S s S $ 88,125 10,413 $ $ 88,125 10,413 $ S (18,065) 10,413 10,413 LIABILITIES Current liabilities Accounts Payable Interest Payable Long-term liabilities Notes Payable Less: Discount on Notes Payable Lease Liability Total liabilities 2,000,000 (400,000) 20,000 $ 2,000,000 $ (380,000) $ 138,843 $ 2,000,000 $ (380,000) $ 138,843 $ 1,857,381 $ $ $ 2,000,000 (380,000) 138,843 138,843 S 106,190 S 4,500 18,000 S STOCKHOLDERS' EQUITY Common Stock, $1 par APIC - excess of par Treasury Stock Retained earnings Total stockholders' equity Total Liabilities and equity $ S 65,500 $ 1,618,000 $ (310,500) $ 65,025.96 61,000 1,600,000 (200,000) 380,670 $ 1,841,670 $ 1,947,860 (110,500) 4,500 18,000 (110,500) (315,644) s 126,980 (61,250) (22,500) $ 65,500 $ 1,618,000 $ (310,500) $ 65,026 $ 1,438,026 S 3,295,407 (45,000) (20,000) (270,000) 41,250 (65,124) $ Assets Liab and Equity $ 108,915 $ 108,915 $ (61,250) $ (61,250) $ $ $ 1,555,000 $ 1,555,000 $ $ $ 270,000) $ 270,000) $ $ 41,250 41,250 $ 84,132 $ 84,132 $ (110,500) $ (110,500) $ 4,671,682 $ 3,295,407 + 4