Question

Selected information from Wildhorse Ltd's statement of financial position and income statement is as follows: WILDHORSE LTD. Statement of Financial Position (partial) December 31 2018 2017 Current assets Accounts receivable $7,300 $13,000 Inventory 6,400 4,600 Prepaid expenses 3,200 2.100 Current liabilities Accounts payable 3,800 2,500 Income tax payable 1,500 650 Accrued liabilities 2.200 1.500 Bank loan payable-current portion 6,000 9.200 O WP hp

Answer 1

Accounts Receivable Opening balance Net sales less: Closing balance Cash received from Accounts receivables $ 13,000 $2,05,000 $ (7,300) $2,10,700 Operating expense Operating cash expense (exclude non cash items) less: Opening balance of prepaid expense add: Closing prepaid expense add: Opening balance of accrued liabilities less: Closing balance of accrued liabilities Operating expense WILDHORSE LTD. Partial Statement of Cash flows Year ended December 31, 2018 Cash flow from operating activity Cash received from customers less : Cash Payments to suppliers $ (1,14,500) for operating expense $ (39,500) for interest $ (1,000) for income tax $ (2,350) $ 39,100 $ (2,100) $ 3,200 $ 1,500 $ 2,200) $ 39,500 $ 2,10,700 Accounts Payable Opening balance $ 2,500 Purchase of inventory (check inventory a/c ) $1,15,800 less: Closing balance $ (3,800) Cash paid to Accounts payable $ 1,14,500 Operating expense Total operating expense less: Depreciation expense less: loss on disposal of equipment Operating cash expense (exclude non cash items) $ 57,000 $ (11,900) $ 16,000) $ 39,100 S (1,57,350) 53,350 Net Cash from operating activities 210700-157350 $ Income tax payable Opening balance Income tax expense less: Closing balance Income tax paid $ 650 $ 3,200 $ (1,500) $ 2,350 Bank loan payable is not Operating activity. Its coming under cash flow from financial activities Interest expense is $ 1000 as per income statement, and there is no interest payable account to adjust the amount. So its entire amount of $ 1000 has paid. Inventory Cost of goods sold Closing balance less: Opening balance Purchase of inventory $1,14,000 $ 6,400 $ (4,600) $ 1,15,800