Wildhorse Co. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $78,880 $ 52,200 Accounts receivable 58.000 67.280 Inventory 175,682 164,720 Prepaid expenses 17.725 24,360 Land 168,200 150.800 232.000 Buildings Accumulated depreciation-buildings Equipment 232,000 (69.600) (46,400) 261,000 179,800 Accumulated depreciation-equipment (52,200) (40.600) Total $869.687 $784,160 Liabilities and Stockholders' Equity Accounts payable $ 51.887 $ 41.760 Bonds payable 348,000 348,000 Common stock. $1 par 232.000 185,600 237,800 208,800 Retained earnings Total $869.687 $784,160 Additional information: 1. Operating expenses include depreciation expense of $48,720 ($23,200 of depreciation expense for buildings and $25,520 for equipment). Additional information: 1. 2. 3. Operating expenses include depreciation expense of $48,720 ($23,200 of depreciation expense for buildings and $25,520 for equipment). Land was sold for cash at book value. Cash dividends of $13,920 were paid. Net income for 2022 was $42,920. Equipment was purchased for $106.720 cash. In addition, equipment costing $25,520 with a book value of $11,600 was sold for $9,280 cash. 46,400 shares of $1 par value common stock were issued in exchange for land with a fair value of $46,400. 4 4 5. 6. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Wildhorse Co. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income 42920 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 48720 Decrease in Accounts Receivable 9280 Increase in Inventory 10962 Decrease in Prepaid Expenses 6635 Increase in Accounts Payable 10127 Loss on Disposal of Plant Assets 2320 77082 Net Cash Provided by Operating Activities 120002 Cash Flows from Investing Activities Purchase of Equipment 106720 Sale of Equipment 9280 Sale of Land 29000 Net Cash used by Investing Activities -68440 Cash Flows from Financing Activities Payment of Cash Dividends Net Increase in Cash Cash at Beginning of Period Cash at End of Period s Noncash investing and Financing Activities Cash Flows from Investing Activities Purchase of Equipment 106720 Sale of Equipment 9280 Sale of Land 29000 Net Cash used by Investing Activities -68440 Cash Flows from Financing Activities Payment of Cash Dividends Net Increase in Cash Cash at Beginning of Period Cash at End of Period S S Noncash Investing and Financing Activities Acquired Land by Issuance of Common Stock S
