Presented below are changes in all the account balances of Wildhorse Furniture Co. during the current...

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Accounting

Presented below are changes in all the account balances ofWildhorse Furniture Co. during the current year, except forretained earnings.
Increase
(Decrease)
Increase
(Decrease)
Cash $70,140 Accounts Payable $(52,210 )
Accounts Receivable (net) 52,900 Bonds Payable 82,530
Inventory 128,000 Common Stock 134,900
Investments (48,240 ) Paid-In Capital in Excess of Par—Common Stock 13,110

Compute the net income for the current year, assuming that therewere no entries in the Retained Earnings account except for netincome and a dividend declaration of $28,270 which was paid in thecurrent year.

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4.1 Ratings (535 Votes)

Net income can be calculated by preparing the statement of cash flows by indirect method Statement of cash flows I Cash flows from operating activities Net income 52740 Adjustments to reconcile net income to Increase in See Answer

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	Increase (Decrease)			Increase (Decrease)
Cash	$70,140		Accounts Payable	$(52,210	)
Accounts Receivable (net)	52,900		Bonds Payable	82,530
Inventory	128,000		Common Stock	134,900
Investments	(48,240	)	Paid-In Capital in Excess of Par—Common Stock	13,110