The current assets and liabilities sections of the comparative balance sheet of Wildhorse Inc., a private company reporting under ASPE, at October 31 are presented below, along with the income statement: WILDHORSE INC. Comparative Balance Sheet Accounts 2021 2020 Cash $72,270 $76,650 Accounts receivable 46,720 29,930 Inventory 23,725 33,580 Prepaid expenses 5,475 4,234 Accounts payable 31,390 26,280 Accrued expenses payable 3,650 5,840 Dividends payable 17,520 12,410 Income taxes payable 4,964 8,614 WILDHORSE INC. Income Statement Year Ended October 31, 2021 Sales $456,250 Cost of goods sold 284,700 Gross profit 171,550 Operating expenses $64,240 Depreciation expense 16,790 Loss on sale of equipment 5,840 86,870 Profit before income taxes 84,680 Income taxes 21,170 Profit $63,510 Prepare the operating activities section of the cash flow statement using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WILDHORSE INC. Cash Flow Statement (Partial) $ Adjustments to reconcile profit to $ $

The current assets and liabilities sections of the comparative balance sheet of Wildhorse Inc., a private company reporting under ASPE, at October 31 are presented below, along with the income statement: WILDHORSE INC. Comparative Balance Sheet Accounts 2021 2020 Cash $72,270 $76,650 Accounts receivable 46,720 29,930 Inventory 23,725 33,580 Prepaid expenses 5,475 4,234 Accounts payable 31,390 26,280 Accrued expenses payable 3,650 5,840 Dividends payable 17,520 12,410 Income taxes payable 4,964 8,614 WILDHORSE INC. Income Statement Year Ended October 31, 2021 Sales $456,250 Cost of goods sold 284,700 Gross profit 171,550 Operating expenses $64,240 Depreciation expense 16,790 Loss on sale of equipment 5,840 86,870 Profit before income taxes 84,680 Income taxes 21,170 Profit $63,510 Prepare the operating activities section of the cash flow statement using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WILDHORSE INC. Cash Flow Statement (Partial) $ Adjustments to reconcile profit to $ $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

See similar textbooks

eTextbook and Media

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

WILDHORSE INC. Comparative Balance Sheet Accounts
	2021	2020
Cash	$72,270	$76,650
Accounts receivable	46,720	29,930
Inventory	23,725	33,580
Prepaid expenses	5,475	4,234
Accounts payable	31,390	26,280
Accrued expenses payable	3,650	5,840
Dividends payable	17,520	12,410
Income taxes payable	4,964	8,614

WILDHORSE INC. Income Statement Year Ended October 31, 2021
Sales		$456,250
Cost of goods sold		284,700
Gross profit		171,550
Operating expenses	$64,240
Depreciation expense	16,790
Loss on sale of equipment	5,840	86,870
Profit before income taxes		84,680
Income taxes		21,170
Profit		$63,510

WILDHORSE INC. Cash Flow Statement (Partial)

		$
Adjustments to reconcile profit to

	$








		$