Question
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
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
$
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. $ $Step by Step Solution
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