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Exercise 23-13 Sunland Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SUNLAND INC. COMPARATIVE BALANCE SHEET AS OF

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Exercise 23-13

Sunland Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

SUNLAND INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash$6,100

$6,900

Accounts receivable61,900

50,500

Short-term debt investments (available-for-sale)34,800

18,200

Inventory39,900

59,800

Prepaid rent4,900

4,000

Equipment155,500

131,200

Accumulated depreciationequipment(34,800

)(25,300

)Copyrights45,700

50,200

Total assets$314,000

$295,500

Accounts payable$46,200

$39,700

Income taxes payable4,000

6,100

Salaries and wages payable7,900

4,000

Short-term loans payable7,900

10,000

Long-term loans payable59,800

68,600

Common stock, $10 par100,000

100,000

Contributed capital, common stock30,000

30,000

Retained earnings58,200

37,100

Total liabilities & stockholders equity$314,000

$295,500

SUNLAND INC.

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue$335,575

Cost of goods sold173,200

Gross profit162,375

Operating expenses119,100

Operating income43,275

Interest expense$11,400

Gain on sale of equipment2,000

9,400

Income before tax33,875

Income tax expense6,775

Net income$27,100

Additional information:

1.Dividends in the amount of $6,000were declared and paid during 2017.2.Depreciation expense and amortization expense are included in operating expenses.3.No unrealized gains or losses have occurred on the investments during the year.4.Equipment that had a cost of $20,100and was 70% depreciated was sold during 2017.

Prepare a statement of cash flows using the direct method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SUNLANDINC.

Statement of Cash Flows

December 31, 2017

For the Year Ended December 31, 2017

For the Quarter Ended December 31, 2017

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Dividend Payments

Cash Payments for Operating Expenses

Cash Payments for Interest

Principal Payment on Short-term Loan

Cash Payments for Income Taxes

Principal Payment on Long-term Loan

Cash Payments to Suppliers

Cash Received from Customers

Sale of Equipment

Purchase of Equipment

Purchase of Investments

$

image text in transcribed Exercise 23-13 Sunland Inc., a greeting card company, had the following statements prepared as of Decem SUNLAND INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciationequipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity SUNLAND INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: 1 2 3 4 Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND INC. Statement of Cash Flows $ statements prepared as of December 31, 2017. NC. NCE SHEET 017 AND 2016 12/31/2017 $6,100 12/31/2016 $6,900 61,900 50,500 34,800 18,200 39,900 59,800 4,900 4,000 155,500 131,200 (34,800 ) (25,300 ) 45,700 50,200 $314,000 $295,500 $46,200 $39,700 4,000 6,100 7,900 4,000 7,900 10,000 59,800 68,600 100,000 100,000 30,000 30,000 58,200 37,100 $314,000 $295,500 1, 2017 $335,575 173,200 162,375 119,100 43,275 $11,400 2,000 9,400 33,875 6,775 $27,100 Dividends in the amount of $6,000 were declared and paid during 2017. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2017. $ $

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