8

View Policies Current Attempt in Progress Financial statements for Sunland Company are given below: R Sunland Company Balance Sheet January 1, 2021 Assets Equities Cash $ 969000 Accounts payable $ 451000 Accounts receivable 866000 3680000 Buildings and equipment Accumulated depreciation- buildings and equipment (1220000) Common stock 2790000 Patents 430000 1484000 Retained earnings $4725000 $4725000 Statement of Cash Flows For the Year Ended December 31, 2021 Increase (Decrease) in Cash Cash flows from operating activities Net income $1240000 Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable $(384000) Increase in accounts payable 198000 Depreciation-buildings and equipment 355000 Gain on sale of equipment (149000) Amortization of patents 53000 73000 1313000 Net cash provided by operating activities Cash flows from investing activities Sale of equipment 294000 Purchase of land (605000) Purchase of buildings and equipment (1154000) Net cash used by investing activities (1465000) (365000) Cash flows from financing activities Payment of cash dividend Sale of common stock Net cash provided by financing activities 964000 599000 447000 Net increase in cash 969000 Cash, January 1, 2021 $1416000 Cash, December 31, 2021 Netcash provided by financing activities 599000 Net increase in cash 447000 Cash, January 1, 2021 969000 Cash, December 31, 2021 $1416000 Total assets on the balance sheet at December 31, 2021 are $6649000. Accumulated depreciation on the equipment seld was $331000. The balance in the Retained Earnings account at December 31, 2021 was O $2724000 $2359000 $3089000. $1119000