Question 4 Sunland Shoes’ comparative balance sheet is presented below. Sunland reports under ASPE. SUNLAND SHOES...

Question 4

Sunland Shoes’ comparative balance sheet is presented below. Sunland reports under ASPE.

SUNLAND SHOES Balance Sheet December 31
Assets	2021		2020
Cash	$31,584		$19,824
Accounts receivable	27,104		24,976
Long-term investments	25,760		17,920
Equipment	67,200		78,400
Accumulated depreciation—equipment	(15,680	)	(11,200	)
Total	$135,968		$129,920
Liabilities and Shareholders’ Equity
Accounts payable	$21,952		$12,432
Notes payable	11,200		33,600
Common shares	67,200		50,400
Retained earnings	35,616		33,488
Total	$135,968		$129,920

Additional Information:
1.		Profit was $31,696. Dividends declared and paid were $29,568.
2.		Equipment that cost $11,200 and had accumulated depreciation of $1,344 was sold for $4,816.
3.		All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Prepare a statement of cash flows for 2021 using the indirect method.

Expert Solution

ekkarill92 answered 1 year ago

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