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Wildhorse Inc. is a major retailer of road bicycles and a promoter of riding bicycles to work, both to save the environment and improve physical
Wildhorse Inc. is a major retailer of road bicycles and a promoter of riding bicycles to work, both to save the environment and improve physical fitness. Financial statements for Wildhorse are presented below. STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2021 Cash 56,550 Accounts receivable 25,350 Inventory 31,100 Prepaid expenses 15,750 Total current assets 128,750 Property and Equipment Property and equipment 160,800 Less: Accumulated depreciation 78,900 Net property and equipment 81,900 TOTAL ASSETS $210,650 2020 20,900 10,500 16,100 10,750 58,250 150,800 70,000 80,800 $139,050 Current Liabilities Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total Liabilities 11,900 10,750 2,500 25,150 100,800 125,950 15,800 8,750 3,500 28,050 60,800 88,850 Shareholders' Equity Common shares Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,750 73,950 84,700 $210,650 1,100 49,100 50,200 $139,050 2020 500,000 350,000 150,000 INCOME STATEMENT For the Years Ended December 31 2021 Sales revenue 610,050 Cost of sales 416,000 Gross margin 194,050 Expenses Salary expense 136,000 Interest expense 3,500 Other expenses 6,000 Depreciation expense 14,900 Total expenses 160,400 Operating income 33,650 Gain on disposal of equipment 1,950 Income tax expense 6,400 Net income $29,200 125,000 2,400 3,000 8,000 138,400 11,600 1,972 $9,628 Prepare a statement of cash flows for Wildhorse for the year ended December 31, 2021, using the indirect method. Wildhorse follows ASPE. Include any note disclosure on non-cash financing and investing transactions. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Wildhorse Inc. Statement of Cash Flows 4 ta Adjustment to reconcile net income to net cash provided by operating activities: 4 4 4 . > $ Non-cash investing and financing activities ta
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