Question

The following are Wildhorse Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

COMPARATIVE BALANCE SHEETS
		2017			2016			Increase (Decrease)
Cash		$811,100			$702,700			$108,400
Accounts receivable		1,139,100			1,176,000			(36,900	)
Inventory		1,847,000			1,704,500			142,500
Property, plant, and equipment		3,317,700			2,945,400			372,300
Accumulated depreciation		(1,158,000	)		(1,048,400	)		(109,600	)
Investment in Myers Co.		312,200			274,000			38,200
Loan receivable		250,000			—			250,000
Total assets		$6,519,100			$5,754,200			$764,900
Accounts payable		$1,010,900			$960,700			$50,200
Income taxes payable		29,900			50,500			(20,600	)
Dividends payable		80,600			100,700			(20,100	)
Lease liabililty		432,100			—			432,100
Common stock, $1 par		500,000			500,000			—
Paid-in capital in excess of par—common stock		1,499,300			1,499,300			—
Retained earnings		2,966,300			2,643,000			323,300
Total liabilities and stockholders’ equity		$6,519,100			$5,754,200			$764,900

Additional information:

1.		On December 31, 2016, Wildhorse acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $152,800 for the year ended December 31, 2017. No dividend was paid on Myers’s common stock during the year.
2.		During 2017, Wildhorse loaned $332,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $82,200, plus interest at 10%, on December 31, 2017.
3.		On January 2, 2017, Wildhorse sold equipment costing $59,800, with a carrying amount of $38,000, for $40,100 cash.
4.		On December 31, 2017, Wildhorse entered into a capital lease for an office building. The present value of the annual rental payments is $432,100, which equals the fair value of the building. Wildhorse made the first rental payment of $60,300 when due on January 2, 2018.
5.		Net income for 2017 was $403,900.
6.		Wildhorse declared and paid the following cash dividends for 2017 and 2016.

		2017		2016
Declared		December 15, 2017		December 15, 2016
Paid		February 28, 2018		February 28, 2017
Amount		$80,600		$100,700

Prepare a statement of cash flows for Wildhorse Corp. for the year ended December 31, 2017, 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).)

Answer 1