Presented here are the financial statements of Sunland Company. Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Additional data: 1. 2. 3. SUNLAND COMPANY Comparative Balance Sheets December 31 4. 5. 1. 2. 3. 4. Further analysis reveals the following. 2022 $18,300 $36,900 $129,100 SUNLAND COMPANY Income Statement For the Year Ended December 31, 2022 6,100 32,800 29,300 59,400 (29,300) $28,400 7,000 26,400 18,100 $129,100 49,200 $242,600 176,600 66,000 24,400 41,600 2,400 39,200 7,840 $31,360 2021 $20,800 18,100 20,700 77,700 (23,500) $113,800 $16,600 8,000 33,900 14,900 40,400 $113,800 Depreciation expense was $16,300. Dividends declared and paid were $22,560. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,300 and had accumulated depreciation of $10,500 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. Accounts payable pertain to merchandise suppliers. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account.
Presented here are the financial statements of Sunland Company. Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Additional data: 1. 2. 3. SUNLAND COMPANY Comparative Balance Sheets December 31 4. 5. 1. 2. 3. 4. Further analysis reveals the following. 2022 $18,300 $36,900 $129,100 SUNLAND COMPANY Income Statement For the Year Ended December 31, 2022 6,100 32,800 29,300 59,400 (29,300) $28,400 7,000 26,400 18,100 $129,100 49,200 $242,600 176,600 66,000 24,400 41,600 2,400 39,200 7,840 $31,360 2021 $20,800 18,100 20,700 77,700 (23,500) $113,800 $16,600 8,000 33,900 14,900 40,400 $113,800 Depreciation expense was $16,300. Dividends declared and paid were $22,560. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,300 and had accumulated depreciation of $10,500 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. Accounts payable pertain to merchandise suppliers. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare a statement of cash flows for Sunland Company using the direct method. (Show amounts that decrease cash flow with either
a-sign e.g.-15,000 or in parenthesis e.g. (15,000).)
(b).
Cash Flows from Operating Activities
cash payments:
Free cash flow
SUNLAND COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2022
$
eTextbook and Media
>
Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
$
$
Transcribed Image Text:Presented here are the financial statements of Sunland Company.
Assets
Cash
Accounts receivable
Inventory
Property, plant, and equipment
Accumulated depreciation
Total
Liabilities and Stockholders' Equity
Accounts payable
Income taxes payable
Bonds payable
Common stock
Retained earnings
Total
Sales revenue
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Income from operations
Interest expense
Income before income taxes
Income tax expense
Net income
Additional data:
1.
2.
3.
SUNLAND COMPANY
Comparative Balance Sheets
December 31
4.
5.
1.
2.
3.
Further analysis reveals the following.
2022
$18,300
$36,900
6,100
32,800
29,300
SUNLAND COMPANY
Income Statement
For the Year Ended December 31, 2022
59,400
$129,100
(29,300)
$28,400
7,000
26,400
18,100
$129,100
49,200
$242,600
176,600
66,000
24,400
41,600
2,400
39,200
7,840
$31,360
Bonds were redeemed at their carrying value.
Common stock was issued at par for cash.
2021
$20,800
4. All sales and inventory purchases are on account.
18,100
20,700
77,700
(23,500)
$113,800
$ 16,600
8,000
33,900
14,900
Depreciation expense was $16,300.
Dividends declared and paid were $22,560.
During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,300 and had accumulated
depreciation of $10,500 at the time of sale.
40,400
$113,800
Accounts payable pertain to merchandise suppliers.
All operating expenses except for depreciation were paid in cash.
All depreciation expense is in the selling expense category.
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