Question

Question #5
Sunshine Inc. Balance sheet December 31
2019 2018 Cash 148,200 $ 76,800 $ Receivables 29,400 30,400 Merchandise Inventory 33,400 35,200 Property, Plant, Equipment 230,400 190,400 Accumulated Depreciation 64,000 52,800 Long-term investment 6,000 383,400$ 280,000 $ Accounts Payable 43,600 62,400 Accrued liabilities 11,200 6,400 Long-term notes payable 97,600 40,000 Common shares 49,600 8,000 Retained earnings 181,400 163,200 383,400$ 280,000 $
Sunshine Inc. Income statement For year ended December 31, 2019 Sales 627,200 $ Operating Expenses Cost of goods sold 383,200 $ Other expenses 155,200 Depreciation expense 25,600 Total Operating expenses 564,000 Operating Income 63,200 Gain on sale of plant assets 5,000 Profit 68,200 $
NOTES: 1. Paid dividends of __________ during the year. 2. The $5,000 gain on sale of plant assets came from an asset sale with an original cost of $59,200 and accumulated depreciation of 14,400. 3. Plant assets worth $99,200 were purchased during the year by paying cash of $32,000 and issuing a long-term note for the balance. 4. Additional shares were issued for cash. 5. Long term debt was reduced by $9,600. 6. Cash of $6,000 was placed into a long term investment. REQUIRED: Prepare a statement of cash flows using the indirect method for the year ended Dec. 31, 2019.   

Answer 1