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Selected information from Wildhorse Ltd's statement of financial position and statement of income is as follows: WILDHORSE LTD. Statement of Financial Position (partial) December 31 2021 2020 Current assets Accounts receivable $8,000 $12,000 Inventory 6,000 4,200 Prepaid expenses 3,600 2,000 Current liabilities Accounts payable 3,650 2,800 Income tax payable 1,600 600 Property tax payable 2,500 1.100 Bank loan payable-current portion 6,000 8,400 WILDHORSELTD. Statement of Income Year Ended December 31, 2021 Sales $195,000 Cost of goods sold 113,000 Gross profit 82,000 Operating expenses 55,000 Income from operations 27,000 Interest expense 2,000 Income before income tax 25,000 Income tax expense 3,900 Net income $21,100 Additional information: 1. The bank loan was received in the past to finance the purchase of equipment. Operating expenses included depreciation expense of $11,300 and a loss of $5,000 on the disposal of equipment. 2. Prepare the operating activities section of the statement of cash flows, 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).) WILDHORSE LTD. Statement of Cash Flows (Partial) Operating activities w Adjustments to reconcile net income to

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