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Wildhorse Corporation Balance Sheet As at September 30 Assets 2021 2020 Cash $96,000 Accounts receivable $128,000 Merchandise inventory 106,000 111,000 80,000 Prepaid expenses 24,000 226,000

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Wildhorse Corporation Balance Sheet As at September 30 Assets 2021 2020 Cash $96,000 Accounts receivable $128,000 Merchandise inventory 106,000 111,000 80,000 Prepaid expenses 24,000 226,000 Long-term investments 18,000 251,000 Equipment 122,000 1,406,000 Less: Accumulated depreciation (519,000) 1,308,000 (451,000) $1,475,000 $1,431,000 Liabilities and Shareholders' Equity Accounts payable $75,000 $83,000 Income tax payable 21,000 14,000 Bonds payable 900,000 946,000 Common shares 201,000 141,000 Retained earnings 278,000 247,000 $1,475,000 $1,431,000 Wildhorse Corporation Income Statement For the Year Ended September 30, 2021 Sales $896,000 Cost of goods sold 624,000 Gross profit 272,000 Operating expenses 185,000 Income from operations 87,000 Interest expense 2,000 Gain on disposal of equipment 2,000 Income before income tax 87,000 Income tax expense 34,000 Profit $53,000 ADDITIONAL INFORMATION: Depreciation expense is included in operating expenses. During the year, equipment that originally cost $101,000 was sold for cash. The equipment was 60% depreciated at the time of the sale. Long-term investments were purchased for cash during the year. Prepare a statement of cash flows, in good form, for Wildhorse Corporation, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in Wildhorse Corporation Statement of Cash Flows X For the Year Ended Sept ating ActivitiesWildhorse Corporation Statement of Cash Flows x For the Year Ended Sept TOperating Activities Profit X Adjustment to reconcile profit to net cash provided by operating activities: Depreciation Expense X Increase in Accounts Receivable x Increase in Inventory X Decrease in Income Tax X Increase in Accounts Pa Decrease in Accounts Payable [Increase in Income Taxes Payable) X Net Cash Used by Opera [Investing Activities Purchase of Equipment x Issued Common Shares Paid Dividends Net Cash Used by Investing Activities Financing Activities X Proceeds from Sale of EX Increase in Accounts Pa' Decrease in Accounts Payable X Increase in Income Taxes Payable X Net Cash Used by Opera Investing Activities Purchase of Equipment X Issued Common Shares Paid Dividends Net Cash Used by Investing Activities x [Financing Activities) X Proceeds from Sale of E Purchase of Equipment x Gain on Disposal of Equi E Net Cash Used by Financing Activities X Increase in Cash TCash Balance, Beginning of Year Cash Balance, End of Year EIncrease in Accounts Receivable x x Depreciation Expense Loss on Sale of Equipment X Increase in Prepaid Expenses Gain on Disposal of Equipment X Increase in Accounts Payable Issued Common Shares Paid Dividends x Increase in Income Taxes Payable L Increase in Inventory x Decrease in Prepaid Expenses Increase in Accounts Receivable Decrease in Income Taxes Payable Decrease in Accounts Payable Profit v Repaid Bonds Payable Purchase of Equipment Decrease in Merchandise Inventory Purchase of Long-Term Investment v Purchase of Short-Term InvestmentIssued Common Shares Paid Dividends m Gain on Disposal of Equipment Purchase of Short-Term Investment Decrease in Income Taxes Payable Loss on Sale of Equipment Decrease in Merchandise Inventory Profit Increase in Accounts Payable Decrease in Prepaid Expenses Depreciation Expense Repaid Bonds Payable Proceeds from Sale of Equipment Increase in Accounts Receivable Increase in Income Taxes Payable Purchase of Equipment Decrease in Accounts Payable V Increase in Inventory Purchase of Long-Term Investment Decrease in Accounts Receivable V Increase in Prepaid ExpensesNet Cash Used by Financing Activities X Increase in Cash Cash Flows from Operating Activities X Decrease in Cash Cash Balance, Beginning of Year X Net Cash Provided by Operating Activities Net Cash Used by Investing Activities X Cash Balance, End of Year Cash Flows from Investing Activities Cash Flows from Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities V Net Cash Used by Operating Activities

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