Question

You are provided with the following information for Wildhorse Co., effective as of its April 30, 2022 year-end. Accounts payable Accounts receivable Accumulated depreciation-equipment Cash $ 848 880 670 1,320 16,600 1,030 350 325 2,510 1,400 160 140 290 600 Common stock Cost of goods sold Depreciation expense Dividends Equipment Goodwill Income tax expense Income taxes payable Insurance expense Interest expense Inventory Investment in land Land Mortgage payable (long-term) Notes payable (short-term) Prepaid insurance Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Sales revenue Stock investments (short-term) 1,010 14,220 3,500 4,100 70 1,400 900 245 6,300 1,800

Answer 1

Income Statement:

WILDHORSE CO.
Income Statement
For the year ended April 30,2022
Revenues:
Sales revenue		$6,300
Expenses:
Cost of goods sold	$1,030
Depreciation expense	$350
Income tax expense	$160
Insurance expense	$290
Interest expense	$600
Salaries and wages expense	$900
Total Expenses		$3,330
Net income		$2,970

Statement of retained earnings:

WILDHORSE CO.
Retained earnings statement
For the year ended April 30,2022
Retained earnings,beginning	$1,400
Add: Net income	$2,970
	$4,370
(Less): Dividends	($325)
Retained earnings,ending	$4,045

Balance Sheet:

WILDHORSE CO.
Balance Sheet
As of April 30,2022
Assets
Current assets:
Cash		$1,320
Stock investments (short-term)		$1,800
Accounts receivable		$880
Inventory		$1,010
Prepaid insurance		$70
Total current assets			$5,080
Investments:
Investment in land			$14,220
Property,plant,and equipment:
Land		$3,500
Equipment	$2,510
Accumulated depreciation-equipment	($670)	$1,840
Total property,plant, and equipment			$5,340
Intangible assets:
Goodwill			$1,400
Total Assets			$26,040
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$848
Salaries and wages payable		$245
Notes payable (short-term)		$62
Income tax payable		$140
Total current liabilities			$1,295
Non-current liabilities:
Mortgage payable (long-term)			$4,100
Total liabilities			$5,395
Stockholders' equity:
Common stock		$16,600
Retained earnings		$4,045
Total stockholders' equity			$20,645
Total liabilities and stockholders' equity			$26,040