Wildhorse Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $846,000 Operating expenses (excluding depreciation) $630,000 Depreciation expense 61,000 Loss on sale of equipment 27,000 718,000 Income before income taxes 128,000 Income tax expense 40,000 Net income $88,000 Wildhorse’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $35,000 $57,000 Accounts payable 42,000 30,000 Income taxes payable 3,900 8,700 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. WILDHORSE COMPANY Statement of Cash Flows (Partial) choose the accounting period select an opening section name select an item $enter a dollar amount select an item $enter a dollar amount select an item enter a dollar amount enter a subtotal of the two previous amounts select a closing section name $enter a total amount for the section

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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18.

Wildhorse Company’s income statement for the year ended December 31, 2020, contained the following condensed information.

Service revenue		$846,000
Operating expenses (excluding depreciation)	$630,000
Depreciation expense	61,000
Loss on sale of equipment	27,000	718,000
Income before income taxes		128,000
Income tax expense		40,000
Net income		$88,000

Wildhorse’s balance sheet contained the following comparative data at December 31.

	2020	2019
Accounts receivable	$35,000	$57,000
Accounts payable	42,000	30,000
Income taxes payable	3,900	8,700

(Accounts payable pertains to operating expenses.)

Prepare the operating activities section of the statement of cash flows using the direct method.

WILDHORSE COMPANY Statement of Cash Flows (Partial) choose the accounting period
select an opening section name
select an item		$enter a dollar amount
select an item	$enter a dollar amount
select an item	enter a dollar amount
		enter a subtotal of the two previous amounts
select a closing section name		$enter a total amount for the section

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