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Exercise 5-16 A comparative balance sheet for Sunland Corporation is presented as follows. December 31 2019 Assets Cash Accounts receivable Inventory and Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2020 $72,750 83,910 181,910 191,160 72,910 112,160 261,910 202,160 (70,910) (44,160) $602,480 $551,480 $ 35,910 150,000 214,000 202,570 $602,480 $ 22,000 68,160 $49,160 200,000 164,000 138,320 $551,480 Additional information: 1. Net income for 2020 was $128,820. No gains or losses were recorded in 2020. 2. Cash dividends of $64,570 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2020 for Sunland Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis (15,000).) SUNLAND CORPORATION Statement of Cash Flows

Exercise 5-16 A comparative balance sheet for Sunland Corporation is presented as follows. December 31 2019 Assets Cash Accounts receivable Inventory and Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2020 $72,750 83,910 181,910 191,160 72,910 112,160 261,910 202,160 (70,910) (44,160) $602,480 $551,480 $ 35,910 150,000 214,000 202,570 $602,480 $ 22,000 68,160 $49,160 200,000 164,000 138,320 $551,480 Additional information: 1. Net income for 2020 was $128,820. No gains or losses were recorded in 2020. 2. Cash dividends of $64,570 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2020 for Sunland Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis (15,000).) SUNLAND CORPORATION Statement of Cash Flows

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 5-16 A comparative balance sheet for Sunland Corporation is presented as follows. December 31 Assets Cash Accounts receivable Inventory Land Equipment. Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2020 $72,750 $ 22,000 68,160 83,910 181,910 2019 191,160 72,910 112,160 261,910 202,160 (70,910) (44,160) $602,480 $551,480 $ 35,910 150,000 214,000 202,570 $602,480 $49,160 200,000 164,000 138,320 $551,480 Additional information: 1. Net income for 2020 was $128,820. No gains or losses were recorded in 2020. 2. Cash dividends of $64,570 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2020 for Sunland Corporation. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND CORPORATION Statement of Cash Flows ♦
Transcribed Image Text:Exercise 5-16 A comparative balance sheet for Sunland Corporation is presented as follows. December 31 Assets Cash Accounts receivable Inventory Land Equipment. Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2020 $72,750 $ 22,000 68,160 83,910 181,910 2019 191,160 72,910 112,160 261,910 202,160 (70,910) (44,160) $602,480 $551,480 $ 35,910 150,000 214,000 202,570 $602,480 $49,160 200,000 164,000 138,320 $551,480 Additional information: 1. Net income for 2020 was $128,820. No gains or losses were recorded in 2020. 2. Cash dividends of $64,570 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2020 for Sunland Corporation. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND CORPORATION Statement of Cash Flows ♦
Adjustments to reconcile net income to Issued common stock to retire $ LINK TO TEXT Current cash debt coverage Cash debt coverage Free cash flow : + $ Sunland has + Comment on its liquidity and financial flexibility. ♦ ♦ + ♦ ♦ + ♦ :1 :1 SUNLAND CORPORATION Statement of Cash Flows liquidity. Its financial flexibility is # + Determine Sunland Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67.) #. ♦ ♦ $ of bonds outstanding ♦ $
Transcribed Image Text:Adjustments to reconcile net income to Issued common stock to retire $ LINK TO TEXT Current cash debt coverage Cash debt coverage Free cash flow : + $ Sunland has + Comment on its liquidity and financial flexibility. ♦ ♦ + ♦ ♦ + ♦ :1 :1 SUNLAND CORPORATION Statement of Cash Flows liquidity. Its financial flexibility is # + Determine Sunland Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67.) #. ♦ ♦ $ of bonds outstanding ♦ $
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