Presented below are the financial statements of Wildhorse Company.
Wildhorse Company
Comparative Balance Sheets
December 31

Assets

2017

2016

Cash
$ 41,300

$ 23,600

Accounts receivable
23,600

16,520

Inventory
33,040

23,600

Property, plant, and equipment
70,800

92,040

Accumulated depreciation
(37,760

)

(28,320

)

Total
$130,980

$127,440

Liabilities and Stockholders’ Equity

Accounts payable
$ 22,420

$ 17,700

Income taxes payable
8,260

9,440

Bonds payable
20,060

38,940

Common stock
21,240

16,520

Retained earnings
59,000

44,840

Total
$130,980

$127,440

Wildhorse Company
Income Statement
For the Year Ended December 31, 2017

Sales revenue
$285,560

Cost of goods sold
206,500

Gross profit
79,060

Selling expenses
$21,240

Administrative expenses
7,080

28,320

Income from operations
50,740

Interest expense
3,540

Income before income taxes
47,200

Income tax expense
9,440

Net income
$ 37,760


Additional data:
1. Depreciation expense was $20,650.
2. Dividends declared and paid were $23,600.
3. During the year equipment was sold for $10,030 cash. This equipment cost $21,240 originally and had accumulated depreciation of $11,210 at the time of sale.
Problem 12-7A Presented below are the financial st

Problem 12-7A Presented below are the financial st
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)