Presented below is the comparative balance sheet for Wildhorse Inc., a private company reporting under ASPE, at December 31, 2024, and 2023: WILDHORSE INC. Balance Sheet December 31 Assets Cash Accounts receivable Inventory Long-term investment Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Long-term notes payable Common shares Retained earnings Total liabilities and shareholders' equity Additional information: 1. 2. 3. 5. 6. 7. 8. 2024 $68,340 103,020 209,100 103,530 545,700 (165,750) $863,940 $58,650 6,120 14,280 25,500 642,600 116,790 $863,940 2023 $99,960 76,500 158,610 0 469.200 (142,800) $661.470 $47,940 0 15,300 0 535,500 62.730 $661,470 WILDHORSE INC. Income Statement Year Ended December 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Interest expense Interest revenue Profit before income tax Income tax expense Profit for the year $150,450 3,060 3,060 (4,590) ↓ $676,260 440,640 235,620 153,510 82,110 (1,530) 83,640 14,280 $69,360 Cash dividends of $15,300 were declared. A long-term investment was acquired for cash at a cost of $103,530. Depreciation expense is included in the operating expenses. The company issued 10,710 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $30,600 was sold during the year for cash. The equipment had a carrying value of $9,180 at the time of sale. The company issued a note payable for $28.560 and repaid $3,060 by year end. All purchases of inventory are on credit. Accounts payable is used only to record purchases of inventory.
Presented below is the comparative balance sheet for Wildhorse Inc., a private company reporting under ASPE, at December 31, 2024, and 2023: WILDHORSE INC. Balance Sheet December 31 Assets Cash Accounts receivable Inventory Long-term investment Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Long-term notes payable Common shares Retained earnings Total liabilities and shareholders' equity Additional information: 1. 2. 3. 5. 6. 7. 8. 2024 $68,340 103,020 209,100 103,530 545,700 (165,750) $863,940 $58,650 6,120 14,280 25,500 642,600 116,790 $863,940 2023 $99,960 76,500 158,610 0 469.200 (142,800) $661.470 $47,940 0 15,300 0 535,500 62.730 $661,470 WILDHORSE INC. Income Statement Year Ended December 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Interest expense Interest revenue Profit before income tax Income tax expense Profit for the year $150,450 3,060 3,060 (4,590) ↓ $676,260 440,640 235,620 153,510 82,110 (1,530) 83,640 14,280 $69,360 Cash dividends of $15,300 were declared. A long-term investment was acquired for cash at a cost of $103,530. Depreciation expense is included in the operating expenses. The company issued 10,710 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $30,600 was sold during the year for cash. The equipment had a carrying value of $9,180 at the time of sale. The company issued a note payable for $28.560 and repaid $3,060 by year end. All purchases of inventory are on credit. Accounts payable is used only to record purchases of inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below is the comparative balance sheet for Wildhorse Inc., a private company reporting under ASPE, at December 31, 2024, and 2023:
Assets
Cash
Additional information:
1.
2.
3.
Accounts receivable
Inventory
Long-term investment
Property, plant, and equipment
Accumulated depreciation
Total assets
Liabilities and Shareholders' Equity
Accounts payable
Dividends payable
Income tax payable
Long-term notes payable
25.500
Common shares
642,600
Retained earnings
116,790
Total liabilities and shareholders' equity $863,940
4.
5.
6.
7.
WILDHORSE INC.
Balance Sheet
December 31
8.
2024
$68,340
Cash dividends of $15,300 were declared.
103,020
209,100
103,530
545,700
(165,750)
$863,940
$58,650
6,120
14,280
2023
$99,960
76,500
158,610
0
469,200
(142,800)
$661,470
$47,940
0
15,300
0
535,500
62,730
$661,470
WILDHORSE INC.
Income Statement
Year Ended December 31, 2024
Sales
Cost of goods sold
Gross profit
Operating expenses
Loss on sale of equipment
Profit from operations
Interest expense
Interest revenue
Profit before income tax
Income tax expense
Profit for the year
$150,450
3,060
3,060
(4,590)
↓
$676,260
440,640
Equipment that originally cost $30,600 was sold during the year for cash. The equipment had a carrying value of $9,180 at the time of sale.
The company issued a note payable for $28.560 and repaid $3,060 by year end.
All purchases of inventory are on credit.
Accounts payable is used only to record purchases of inventory.
235,620
153,510
82,110
(1,530)
83,640
14,280
$69,360
A long-term investment was acquired for cash at a cost of $103,530.
Depreciation expense is included in the operating expenses.
The company issued 10,710 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The proceeds were used to purchase
additional equipment.
Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g.
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