V ustments to reconcile net income to << WILDHORSE INC. Statement of Cash Flows 10 14
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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![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 to
V
WILDHORSE INC.
Statement of Cash Flows
<
<
S
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F258dfe36-5ecb-42e6-bf02-ad24c382a232%2Fcb099b18-ddbf-4402-a42c-1a736be75fe0%2Ft5hkvt_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 to
V
WILDHORSE INC.
Statement of Cash Flows
<
<
S
$
![Wildhorse Inc., had the following condensed balance sheet at the end of operations for 2019.
Cash
Current assets other than cash
Equity invesments
Plant assets (net)
Land
1.
During 2020, the following occurred.
2.
3.
4.
5.
6.
7.
WILDHORSE INC.
BALANCE SHEET
DECEMBER 31, 2019
$8,400
28,800
8.
20,000
67,100
40,300
$164,600
Current liabilities
Long-term notes payable
Bonds payable
Common stock
Retained earnings
A 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.
$15,200
25,500
25,000
75,000
23,900
$164,600
Wildhorse 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F258dfe36-5ecb-42e6-bf02-ad24c382a232%2Fcb099b18-ddbf-4402-a42c-1a736be75fe0%2Fiecm79a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wildhorse Inc., had the following condensed balance sheet at the end of operations for 2019.
Cash
Current assets other than cash
Equity invesments
Plant assets (net)
Land
1.
During 2020, the following occurred.
2.
3.
4.
5.
6.
7.
WILDHORSE INC.
BALANCE SHEET
DECEMBER 31, 2019
$8,400
28,800
8.
20,000
67,100
40,300
$164,600
Current liabilities
Long-term notes payable
Bonds payable
Common stock
Retained earnings
A 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.
$15,200
25,500
25,000
75,000
23,900
$164,600
Wildhorse 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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