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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

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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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: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
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
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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