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Wildhorse Co. reported the following information for 2019. Additional information: 1. Operating expenses include depreciation expense of $ 39,720. 2. Land was sold at its
Wildhorse Co. reported the following information for 2019.
Additional information: | ||
1. | Operating expenses include depreciation expense of $ 39,720. | |
2. | Land was sold at its book value for cash. | |
3. | Cash dividends of $ 85,380 were declared and paid in 2019. | |
4. | Equipment with a cost of $ 165,510 was purchased for cash. Equipment with a cost of $ 51,220 and a book value of $ 35,710 was sold for $ 33,720 cash. | |
5. | Bonds of $ 50,240 were redeemed at their face value for cash. | |
6. | Common stock ($1 par) of $ 171,130 was issued for cash. |
Use this information to prepare a statement of cash flows using the indirect method.
Wildhorse Co. Comparative Balance Sheets December 31 Change 2019 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings (20,820) (13,880) 6,940 Increase Equipment Accumulated depreciation-equipment (27,360) 10,090) 17,270 Increase 2018 Increase/Decrease $54,190 36,090 $18,100 Increase 21,880 40,080 Increase 43,830 Increase 2,050 Increase 61,960 43,830 6,040 54,900 0 3,990 70,260 15,360 Decrease 201,930 201,930 0 182,690 68,400 114,290 Increase Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings $557,360 $378,580 $43,400 39,810 3,590 Increase 9,920 0 99,340 230,940 9,920 Decrease 149,58050,240 Decrease 59,810 171,130 Increase 183,680 119,460 64,220 Increase Totals 557,360 $378,580 Wildhorse Co. Income Statement For the Year Ended December 31, 2019 $936,670 Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of plant assets $478,040 229,760 11,900 Income before income taxes Income tax expense Net income 1,990 721,690 214,980 65,380 $149,600Step by Step Solution
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