Answered step by step
Verified Expert Solution
Question
1 Approved Answer
WILDHORSE RETAILERS LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 23,000 $ 10,000 Accounts receivable 51,000 39,000 Inventory 167,000 Furniture 159,000
WILDHORSE RETAILERS LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 23,000 $ 10,000 Accounts receivable 51,000 39,000 Inventory 167,000 Furniture 159,000 79,000 Accumulated depreciation (47,000) (27,000) Total assets $353,000 $240,000 139,000 Liabilities and Shareholders' Equity Accounts payable $ 51,000 $ 37,000 Bank loan payable (noncurrent) 107,000 77,000 Common shares 63,000 58,000 Retained earnings 132,000 68,000 Total liabilities and shareholders' equity $353,000 $240,000 Additional information: 1. Net income was $64,000 in 2018. 2. Depreciation expense was $20,000 in 2018. 3. Payments made to the bank pertaining to the bank loan were $10,000 in 2018. Some new loans were obtained that year. 4. Common shares were issued in 2018 and no shares have been bought back by the company. 5. In 2018, no furniture was sold. WILDHORSE RETAILERS LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2018 Cash flows from operating activities Net income 64000 Adjustments to reconcile net income to Net cash provided by operating activities X Increase in inventory 28000 X Increase in accounts receivable x Increase in accounts payable Depreciation expense 9 Net cash provided by operating activities Cash flows from investing activities Purchase of furniture Net cash used by investing activities Cash flows from financing activities Repayment of bank loan Issue of common shares lll Payment of cash dividends Net cash provided by financing activities - Net increase in cash Cash, January 1 Net increase in cash Cash, January 1 100 Cash, December 31
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started