Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,0001)Adjustments to reconcile net income toVWILDHORSE INC.Statement of Cash Flows<<S$ Wildhorse Inc., had the following condensed balance sheet at the end of operations for 2019.CashCurrent assets other than cashEquity invesmentsPlant assets (net)Land1.During 2020, the following occurred.2.3.4.5.6.7.WILDHORSE INC.BALANCE SHEETDECEMBER 31, 2019$8,40028,8008.20,00067,10040,300$164,600Current liabilitiesLong-term notes payableBonds payableCommon stockRetained earningsA tract of land was purchased for $8,900.Bonds payable in the amount of $15,000 were redeemed at par.An additional $9,900 in common stock was issued at par.Dividends totaling $9,400 were paid to stockholders.Net income was $30,600 after allowing depreciation of $13,300.Land was purchased through the issuance of $22,800 in bonds.$15,20025,50025,00075,00023,900$164,600Wildhorse Inc. sold part of its investment portfolio for $12,900. This transaction resulted in a gain of $1,900 for the company.No unrealized gains or losses were recorded on these investments in 2020.Both current assets (other than cash) and current liabilities remained at the same amount.

In order to evaluate a company's financial performance and long-term viability, cash flow analysis…

Answered: V ustments to reconcile net income to…

Business

Accounting

V ustments to reconcile net income to << WILDHORSE INC. Statement of Cash Flows 10 14

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

19 What does the current ratio measure? Multiple Choice The relative proportion of current versus noncurrent assets Whether current assets are sufficient to pay current liabilities The speed which current assets can be converted to cash Whether cash is sufficient to pay current liabilities
23 Which transaction should be included in the operating activities section of the statement of cash flows? Receipt of cash from the sale of property Payment of cash interest Receipt of cash from the sale of stock Payment of cash dividends NEXT > BOOKMARK
Acct 102
All classifications on the balance sheet have a general relationship with sections identified on the statement of cash flows. Indicate which relationships are correctly identified in the table below. Classification on the Number Balance Sheet Section on Statement of Cash Flows I Bonds Payable Financing II Equipment Operating III Common Stock Financing IV Accounts Payable Operating V Accounts Receivable Operating Multiple Choice О О I, II, III, IV, V IV, V I, II, III I, III, IV, V ह
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…
QUESTION 13 Cash flow from assets is defined as: OA operating cash flow minus O B. the cash flow to shareholders minus the cash flow to creditors. the change in net working capital minus net capital spending OC operating cash flow plus the cash flow to creditors plus the cash flow to shareholders O D. operating cash flow plus net capital spending plus the change in net working capital. OE cash flow to shareholders minus net capital spending plus the change in net working capital.
Th e statement of cash fl ows presents the fl ows into which three groups of business activities? A . Operating, Nonoperating, and Financing.
15
Exercise 12-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the Indirect method by placing an X In the appropriate column(s). (More than one column may be used.) a. Paid cash to settle long-term notes payable b. Inventory increased in the year c. Issued common stock for cash d. Accounts payable decreased in the year e. Income taxes payable increased in the year f. Retired bonds payable by issuing stock g. Sold merchandise to customer for cash h. Sold land in return for cash i. Received a cash dividend from investment j. Recorded depreciation expense X Operating Investing Activities Activities X X X X Answer is not complete. X Statement of Cash Flows > X Financing Activities X X X x Noncash Investing & Financing Activities X x Not Reported on Statement or in Notes
A statement of cash flows has: 3 sections 4 sections 5 sections 6 sections
ces Exercise 12-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s). Note: More than one column may be used. a. Purchased treasury stock with cash b. Inventory increased in the year c Issued bonds in return for cash d. Accounts payable decreased in the year e. Income taxes payable increased in the year f. Purchased land by issuing common stock g. Sold merchandise to customer for cash h. Purchased a building with cash i. Received a cash dividend from investment Statement of Cash Flows Operating Investing Financing Activities Activities Activities Dini # Noncash Investing & Financing. Activities Navt Not Reported on Statement or in Notes
QUESTION 6 Which of the fotowing is considered a fnancing activity when preparing the statement of cash flows? A) cash payment for the purchase of equpment BỊ cash payment for extonding credit to others C) caah recelpt from the sale of common stock D) payment of interest on a bond issue