Comparative statement of financial position accounts of
Wildhorse Inc., which follows IFRS, follow:
WILDHORSE
INC. Comparative Statement of Financial Position Accounts December 31, 2017, and 2016 |
|||||||
December 31 | |||||||
Debit accounts | 2017 | 2016 | |||||
Cash | $45,155 | $34,050 | |||||
Accounts receivable | 67,090 | 59,500 | |||||
Merchandise inventory | 30,590 | 24,500 | |||||
Long-term investments (FV-NI) | 22,880 | 40,150 | |||||
Machinery | 29,650 | 18,500 | |||||
Buildings | 67,340 | 56,000 | |||||
Land | 7,500 | 7,500 | |||||
$270,205 | $240,200 | ||||||
Credit accounts | |||||||
Allowance for doubtful accounts | $915 | $165 | |||||
Accumulated depreciation—machinery | 5,565 | 2,210 | |||||
Accumulated depreciation—buildings | 13,840 | 9,350 | |||||
Accounts payable | 30,155 | 24,900 | |||||
Accrued liabilities | 2,360 | 1,110 | |||||
Income taxes payable | 950 | 1,450 | |||||
Long-term note payable—non-trade | 26,300 | 31,300 | |||||
Common shares | 150,000 | 125,000 | |||||
Retained earnings | 40,120 | 44,715 | |||||
$270,205 | $240,200 |
Additional information:
Wildhorse Inc. has adopted the policy of classifying interest paid
as operating activities and dividends paid as financing
activities.
1. | Cash dividends declared during the year were $15,505. | |
2. | A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. | |
3. | FV-NI investments that cost $19,700 and had a fair value at December 31, 2016, of $25,300 were sold during the year for $22,910. | |
4. | Machinery that cost $3,830 and had $750 of depreciation accumulated was sold for $2,180. |
Wildhorse’s 2017 statement of income is as follows:
Sales revenue | $636,000 | ||||||
Less: Cost of goods sold | 376,000 | ||||||
Gross margin | 260,000 | ||||||
Less: Operating expenses (includes $8,595 depreciation, and $5,400 bad debts) |
180,800 | ||||||
Income from operations | 79,200 | ||||||
Loss on sale of FV-NI investments | $(2,390 | ) | |||||
Interest expense | (3,000 | ) | |||||
Loss on sale of machinery | (900 | ) | (6,290 | ) | |||
Income before taxes | 72,910 | ||||||
Income tax expense | (37,000) | ||||||
Net income | $35,910 |
Calculate net cash flow from operating activities using the direct
method
The answer has been presented in the supporting sheets. All the parts has been solved with detailed explanation and format. For detailed answers refer to the supporting sheets.
Comparative statement of financial position accounts of Wildhorse Inc., which follows IFRS, follow: WILDHORSE INC. Comparative...
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Instructions
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