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.

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 47E

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