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destinydiamond6887
destinydiamond6887
25.04.2020 • 
Business

Presented below are the financial statements of Sunland Company. Sunland Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 56,000 $ 32,000 Accounts receivable 32,000 22,400 Inventory 44,800 32,000 Property, plant, and equipment 96,000 124,800 Accumulated depreciation (51,200 ) (38,400 ) Total $177,600 $172,800 Liabilities and Stockholders’ Equity Accounts payable $ 30,400 $ 24,000 Income taxes payable 11,200 12,800 Bonds payable 27,200 52,800 Common stock 28,800 22,400 Retained earnings 80,000 60,800 Total $177,600 $172,800 Sunland Company Income Statement For the Year Ended December 31, 2022 Sales revenue $387,200 Cost of goods sold 280,000 Gross profit 107,200 Selling expenses $28,800 Administrative expenses 9,600 38,400 Income from operations 68,800 Interest expense 4,800 Income before income taxes 64,000 Income tax expense 12,800 Net income $ 51,200 Additional data: 1. Depreciation expense was $28,000. 2. Dividends declared and paid were $32,000. 3. During the year equipment was sold for $13,600 cash. This equipment cost $28,800 originally and had accumulated depreciation of $15,200 at the time of sale. Part 1 Prepare a 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).)

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