Presented below is the comparative balance sheet for Sunland Inc., a private company reporting under ASPE, at December 31, 2024 and 2023: Assets Cash Accounts receivable Inventory Long-term investment Property, plant, and equipment Accumulated depreciation Additional information: 1. 2. 3. 4. 5. Total assets Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Long-term notes payable Common shares Retained earnings Total liabilities and shareholders' equity $999,460 6. SUNLAND INC. Balance Sheet December 31 7. 8. 2024 $79,060 119,180 241,900 119,770 631,300 (191,750) $999,460 $67,850 7,080 16,520 29,500 743,400 135,110 2023 $115,640 88,500 183,490 0 542,800 (165,200) $765,230 $55.460 0 17.700 619,500 72,570 $765,230 Sales SUNLAND INC. Income Statement Year Ended December 31, 2024 Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Interest expense Interest revenue Profit before income tax Income expense Profit for the year $174,050 3,540 The company issued a note payable for $33,040 and repaid $3,540 by year end. All purchases of inventory are on credit. Accounts payable is used only to record purchases of inventory. 3,540 (5.310) Cash dividends of $17,700 were declared. A long-term investment was acquired for cash at a cost of $119,770. Depreciation expense is included in the operating expenses. The company issued 12,390 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $35,400 was sold during the year for cash. The equipment had a carrying value of $10,620 at the time of sale. $782,340 509,760 272,580 177,590 94,990 (1,770) 96,760 16. $80,240
Presented below is the comparative balance sheet for Sunland Inc., a private company reporting under ASPE, at December 31, 2024 and 2023: Assets Cash Accounts receivable Inventory Long-term investment Property, plant, and equipment Accumulated depreciation Additional information: 1. 2. 3. 4. 5. Total assets Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Long-term notes payable Common shares Retained earnings Total liabilities and shareholders' equity $999,460 6. SUNLAND INC. Balance Sheet December 31 7. 8. 2024 $79,060 119,180 241,900 119,770 631,300 (191,750) $999,460 $67,850 7,080 16,520 29,500 743,400 135,110 2023 $115,640 88,500 183,490 0 542,800 (165,200) $765,230 $55.460 0 17.700 619,500 72,570 $765,230 Sales SUNLAND INC. Income Statement Year Ended December 31, 2024 Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Interest expense Interest revenue Profit before income tax Income expense Profit for the year $174,050 3,540 The company issued a note payable for $33,040 and repaid $3,540 by year end. All purchases of inventory are on credit. Accounts payable is used only to record purchases of inventory. 3,540 (5.310) Cash dividends of $17,700 were declared. A long-term investment was acquired for cash at a cost of $119,770. Depreciation expense is included in the operating expenses. The company issued 12,390 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $35,400 was sold during the year for cash. The equipment had a carrying value of $10,620 at the time of sale. $782,340 509,760 272,580 177,590 94,990 (1,770) 96,760 16. $80,240
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below is the comparative balance sheet for Sunland Inc., a private company reporting under ASPE, at December 31, 2024
and 2023:
Assets
Cash
Accounts receivable
Inventory
Long-term investment
Property, plant, and equipment
Accumulated depreciation
Liabilities and Shareholders' Equity
Accounts payable
Dividends payable
Income tax payable
Long-term notes payable
Common shares
Retained earnings
Total liabilities and shareholders' equity
Additional information:
1.
2.
3.
4.
5.
6.
Total assets
7.
SUNLAND INC.
Balance Sheet
December 31
8.
2024
$79,060
119,180
All purchases of inventory are on credit.
241.900
119,770
631,300
(191,750)
$999,460
$67,850
7,080
16,520
29,500
743,400
135,110
$999,460
2023
$115,640
88,500
183,490
0
542,800
(165,200)
$765,230
$55,460
0
17,700
0
619,500
72,570
$765,230
Accounts payable is used only to record purchases of inventory.
SUNLAND INC.
Income Statement
Year Ended December 31, 2024
Sales
Cost of goods sold
Gross profit
Operating expenses
Loss on sale of equipment
Profit from operations
Interest expense
Interest revenue
Profit before income tax
Income tax expense
Profit for the year
$174,050
3,540
3,540
Cash dividends of $17,700 were declared.
A long-term investment was acquired for cash at a cost of $119,770.
Depreciation expense is included in the operating expenses.
The company issued 12,390 common shares for cash on March 2, 2024. The fair value of the shares was $10 per share. The
proceeds were used to purchase additional equipment.
(5,310)
Equipment that originally cost $35,400 was sold during the year for cash. The equipment had a carrying value of $10,620 at
the time of sale.
The company issued a note payable for $33,040 and repaid $3,540 by year end.
$782,340
509,760
272,580
177,590
94,990
(1,770)
96,760
16,520
$80,240
Transcribed Image Text:Prepare a cash flow statement for the year 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).)
Adjustments to reconcile profit to
>
SUNLAND INC.
Cash Flow Statement
V
1000
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