Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wildhorse Corp. uses the direct method to prepare its statement of cash flows. Wildhorse trial balances at December 31, 2020 and 2019, are as follows.

image text in transcribedimage text in transcribed

Wildhorse Corp. uses the direct method to prepare its statement of cash flows. Wildhorse trial balances at December 31, 2020 and 2019, are as follows. December 31 2020 2019 Debits Cash $35,400 $31,700 Accounts receivable 32,600 29,900 31,300 47,300 99,900 95,000 4,500 5,000 252,200 377,300 Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 140,600 170,400 135,900 150,800 4,300 2,600 20,400 60,600 $757,100 $970.600 Credits $1,300 $1,000 16,500 15,000 25,300 15,700 21,100 29,300 Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred tax liability 8% callable bonds payable Common stock Paid-in capital in excess of par Retained earnings 5,300 4,600 45,200 20,000 50,200 40,000 9,000 7,500 44,500 64,100 Sales revenue 538,700 773,400 $757.100 $970,600 Additional information: 1. 2. Wildhorse purchased $4,900 in equipment during 2020. Wildhorse allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. Bad debt expense for 2020 was $5,000, and write-offs of uncollectible accounts totaled $4,700. 3. Determine what amounts Wildhorse should report in its statement of cash flows for the year ended December 31, 2020, for the following items. (a) Cash collected from customers. $ $ (b) Cash paid to suppliers $ (c) Cash paid for interest $ (d) Cash paid for income taxes. $ (e) Cash paid for selling expenses. $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management In Organizations An Integrated Case Study Approach

Authors: Margaret Woods

1st Edition

0415591732, 9780415591737

More Books

Students also viewed these Accounting questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago

Question

13.6 Explain how to set up aflexible benefits program.

Answered: 1 week ago

Question

13.2 Describe five government-mandated benefits.

Answered: 1 week ago