Question

Exercise 12-9 Here are comparative balance sheets for Wildhorse Co.. 2018 Wildhorse Co. Comparative Balance Sheets December 31 Assets 2019 Cash $ 73,000 Accounts receivable 86,500 Inventory 170,000 Land 72,900 Equipment 261,000 Accumulated depreciation-equipment (66,000) Total $597,400 Liabilities and Stockholders' Equity Accounts payable $ 35,400 Bonds payable 148,800 Common stock ($1 par) 216,500 Retained earnings 196,700 Total $597,400 $ 33,400 70,900 187,000 100,300 200,700 (34,200) $558,100 $ 47,000 203,600 175,300 132,200 $558,100 Additional information: 1. Net Income for 2019 was $101,800. 2. Cash dividends of $37,300 were declared and paid. 2 Bandenshin muntint 5A QA Mamadnamed for each dem Ona

Answer 1

WILDHORSE Co STATEMENT OF CASH FLOWS For the period 31st December 2019 Amount ($) Amount ($) Particulars Cash flows from operating activities Profit/(Loss) before taxation Adjustments for: Depreciation -Equipment Working capital changes: 1,01,800 31,800 (Increase)/ Decrease in Accounts receivables Increase/(Decrease) in inventories Increase /(Decrease) in Accounts Payable Cash generated from operations Dividends paid -15,600 17,000 -11,600 1,23,400 37,300 Net cash from operating activities (A) 86,100 Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of Land Net cash used in investing activities (B) -60,300 27,400 -32,900 Cash flows from financing activities Proceeds from issue of share capital Payment of long-term borrowings Net cash used in financing activities 41,200 -54,800 -13,600 Net increase in cash and cash equivalents (A+B+C) Add. Cash and cash equivalents at beginning of period 39,600 33,400 Cash and cash equivalents at end of period 73,000