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Additional information: Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2 3. Cash dividends declared during the year were $10,460. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2022, of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2,190. Sandhill's 2023 statement of income is as follows: Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,625 depreciation and $5,400 loss on impairment) Income from operations Investment Loss Interest expense Loss on disposal of machinery Income before tax Income tax expense Net income $(2,100) (3,000) (850) $636,000 382,000 254,000 180,200 73,800 (5,950) 67,850 37,000 $30,850 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Additional information: Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2 3. Cash dividends declared during the year were $10,460. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2022, of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2,190. Sandhill's 2023 statement of income is as follows: Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,625 depreciation and $5,400 loss on impairment) Income from operations Investment Loss Interest expense Loss on disposal of machinery Income before tax Income tax expense Net income $(2,100) (3,000) (850) $636,000 382,000 254,000 180,200 73,800 (5,950) 67,850 37,000 $30,850 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SFP accounts of Sandhill Inc., which follows IFRS, follow: Debit accounts Cash FV-NI investments Accounts receivable Merchandise inventory Machinery Buildings Land Credit accounts Sandhill Inc. Comparative Statement of Financial Position Accounts December 31, 2023 and 2022 Allowance for expected credit losses Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable-non-trade Common shares Retained earnings Additional information: 1 2 3. 4. 2023 $44,900 22,660 67,390 30,430 29,400 67,420 7,500 $269,700 $1,290 5,795 13,350 29,590 2,405 910 26,300 150,000 40,060 $269,700 2022 $33,400 40,000 59,900 24,400 Sandhill's 2023 statement of income is as follows: 18,250 56,250 7,500 $239,700 $540 2,420 8,850 24,350 1,160 1,410 Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 31,300 125,000 44,670 $239,700 Cash dividends declared during the year were $10,460. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2022, of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2.190.
Transcribed Image Text:SFP accounts of Sandhill Inc., which follows IFRS, follow: Debit accounts Cash FV-NI investments Accounts receivable Merchandise inventory Machinery Buildings Land Credit accounts Sandhill Inc. Comparative Statement of Financial Position Accounts December 31, 2023 and 2022 Allowance for expected credit losses Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable-non-trade Common shares Retained earnings Additional information: 1 2 3. 4. 2023 $44,900 22,660 67,390 30,430 29,400 67,420 7,500 $269,700 $1,290 5,795 13,350 29,590 2,405 910 26,300 150,000 40,060 $269,700 2022 $33,400 40,000 59,900 24,400 Sandhill's 2023 statement of income is as follows: 18,250 56,250 7,500 $239,700 $540 2,420 8,850 24,350 1,160 1,410 Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 31,300 125,000 44,670 $239,700 Cash dividends declared during the year were $10,460. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2022, of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2.190.
Additional information: Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2. 3. 4. Cash dividends declared during the year were $10,460. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2022, of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2,190. Sandhill's 2023 statement of income is as follows: Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,625 depreciation and $5,400 loss on impairment) Income from operations Investment Loss Interest expense Loss on disposal of machinery Income before tax Income tax expense Net income $(2,100) (3,000) (850) $636,000 382,000 254,000 180,200 73,800 (5,950) 67,850 37,000 $30,850 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Transcribed Image Text:Additional information: Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2. 3. 4. Cash dividends declared during the year were $10,460. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2022, of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2,190. Sandhill's 2023 statement of income is as follows: Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,625 depreciation and $5,400 loss on impairment) Income from operations Investment Loss Interest expense Loss on disposal of machinery Income before tax Income tax expense Net income $(2,100) (3,000) (850) $636,000 382,000 254,000 180,200 73,800 (5,950) 67,850 37,000 $30,850 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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