Final answer:
To determine the profit on sale and interest revenue for Wildhorse, one must subtract the cost of goods sold from total sales revenue and calculate interest revenue by applying the appropriate interest rate to the principal amount over the time period.
Step-by-step explanation:
To assess profit on the sale and interest revenue for Wildhorse for the year ended December 31, 2021, we need to consider two distinct components of the company's financial performance. The profit on the sale is calculated by subtracting the cost of goods sold (COGS) from the sales revenue. Interest revenue, on the other hand, involves recognizing income earned from interest-bearing assets over the same period.
Step 1: Calculate Profit on Sale
Profit on Sale = Total Sales Revenue - Cost of Goods Sold (COGS)
Here, you would insert the actual numbers from Wildhorse's financial statements to calculate the profit.
Step 2: Calculate Interest Revenue
Interest Revenue = Principal Amount x Interest Rate x (Time in years)
For this, you would also use the actual interest rate Wildhorse earns on its interest-bearing assets and the amount of time the assets have been earning interest in 2021.
Please note that to provide a more accurate answer, actual figures from Wildhorse's financial statements or sales data would be required.