Question

Sunland Company reported the following information for 2019. Sunland Company Comparative Balance Sheets December 31 Assets 2019 2018 Change Increase/Decrease Cash $68,040 $36,250 $31,790 Increase Accounts receivable 61,900 21,810 40,090 Increase Inventory 44,110 –0– 44,110 Increase Prepaid expenses 6,030 4,010 2,020 Increase Land 54,890 69,300 14,410 Decrease Buildings 200,420 200,420 –0– Accumulated depreciation—buildings (20,805 ) (13,870 ) 6,935 Increase Equipment 181,270 67,510 113,760 Increase Accumulated depreciation—equipment (28,695 ) (10,030 ) 18,665 Increase Totals $567,160 $375,400 Liabilities and Stockholders’ Equity Accounts payable $43,320 $40,150 $3,170 Increase Accrued expenses payable 0 10,080 10,080 Decrease Bonds payable 100,980 150,840 49,860 Decrease Common stock ($1 par) 230,850 59,550 171,300 Increase Retained earnings 192,010 114,780 77,230 Increase Totals $567,160 $375,400 Sunland Company Income Statement For the Year Ended December 31, 2019 Sales revenue $947,640 Cost of goods sold $475,040 Operating expenses 231,230 Interest expense 12,110 Loss on disposal of plant assets 2,000 720,380 Income before income taxes 227,260 Income tax expense 65,190 Net income $162,070 Additional information: 1. Operating expenses include depreciation expense of $40,190. 2. Land was sold at its book value for cash. 3. Cash dividends of $84,840 were declared and paid in 2019. 4. Equipment with a cost of $164,590 was purchased for cash. Equipment with a cost of $50,830 and a book value of $36,240 was sold for $34,240 cash. 5. Bonds of $49,860 were redeemed at their face value for cash. 6. Common stock ($1 par) of $171,300 was issued for cash. Use this information to prepare a statement of cash flows 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).)?

Answer 1