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11. Financial statements for Sunland Company are given below: Sunland Company Balance Sheet January 1, 2021 Assets Equities Cash $ 957000 Accounts payable $ 460000

11. Financial statements for Sunland Company are given below:

Sunland Company
Balance Sheet
January 1, 2021
Assets Equities
Cash $ 957000 Accounts payable $ 460000
Accounts receivable 863000
Buildings and equipment 3660000
Accumulated depreciation buildings and equipment (1180000 ) Common stock 2760000
Patents 434000 Retained earnings 1514000

$4734000

$4734000

Sunland Company
Statement of Cash Flows
For the Year Ended December 31, 2021
Increase (Decrease) in Cash
.
Cash flows from operating activities
Net income $1280000
Adjustments to reconcile net income to net cash provided by operating activities:
Increase in accounts receivable $(380000 )
Increase in accounts payable 194000
Depreciationbuildings and equipment 357000
Gain on sale of equipment (148000 )
Amortization of patents 51000 74000
Net cash provided by operating activities 1354000
.
Cash flows from investing activities
Sale of equipment 290000
Purchase of land (594000 )
Purchase of buildings and equipment (1149000 )
Net cash used by investing activities (1453000)
.
Cash flows from financing activities
Payment of cash dividend (361000 )
Sale of common stock 961000
Net cash provided by financing activities 600000
Net increase in cash 501000
Cash, January 1, 2021 957000
Cash, December 31, 2021

$1458000

Total assets on the balance sheet at December 31, 2021 are $6653000. Accumulated depreciation on the equipment sold was $334000. When the equipment was sold, the Buildings and Equipment account received a credit of

a. $618000.

b. $334000.

c. $476000.

d. $290000.

12. Crane Company reported net income of $59000 for the year ended December 31, 2021 Included in net income were depreciation expense of $8000 and a gain on sale of equipment of $1600. Each of the following accounts increased during 2021:

Accounts receivable $2100
Inventory $4700
Prepaid rent $6500
Available-for-sale securities $1600
Accounts payable $4700

What is the amount of cash provided by operating activities for Crane Company for the year ended December 31, 2021?

a. $56800

b. $55200

c. $58400

d. $47800

13. Sheridan Company has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sheridan Company for 2022 and 2021 are provided below.

BALANCE SHEETS
12/31/22 12/31/21
Cash $407000 $ 193000
Accounts receivable 362000 214000
Inventory 382000 482000
Property, plant and equipment $609000 $960000
Less accumulated depreciation (321000 ) 288000 (306000 ) 654000

$1439000

$1543000

.
Accounts payable $ 176000 $ 97000
Income taxes payable 351000 394000
Bonds payable 359000 602000
Common stock 217000 215000
Retained earnings 336000 235000

$1439000

$1543000

INCOME STATEMENT For the Year Ended December 31, 2022
Sales revenue $8410000
Cost of sales 7153000
Gross profit 1257000
Selling expenses $599000
Administrative expenses 194000 793000
Income from operations 464000
Interest expense 72000
Income before taxes 392000
Income taxes 98000
Net income

$ 294000

The following additional data were provided:

1. Dividends for the year 2022 were $193000.
2. During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3. All depreciation expense is in the selling expense category.

The net cash provided by operating activities is

a. $294000.

b. $246000.

c. $407000.

d. $203000.

14. The balance in retained earnings at December 31, 2020 was $1433000 and at December 31, 2021 was $1162000. Net income for 2021 was $1063000. A stock dividend was declared and distributed which increased common stock $504000 and paid-in capital $185000. A cash dividend was declared and paid. The amount of the cash dividend was

a. $645000.

b. $511000.

c. $830000.

d. $1334000.

15. Coronado Industries provided the following information on selected transactions during 2021:

Dividends paid to preferred stockholders $ 505000
Loans made to affiliated corporations 1440000
Proceeds from issuing bonds 1580000
Proceeds from issuing preferred stock 2060000
Proceeds from sale of equipment 790000
Purchases of inventories 2430000
Purchase of land by issuing bonds 608000
Purchases of treasury stock 1250000

The net cash provided (used) by investing activities during 2021 is

a. $(1250000).

b. $182000.

c. $790000.

d. $(650000).

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