Exercise 5-16 A comparative balance sheet for Sunland Corporation is presented as follows. December 31 2020 $ 72,750 22,000 83,910 181,910 72,910 261,910 (70,910) (44,160) $602,480 $551,480 Assets 2019 Cash Accounts receivable Inventory Land 68,160 191,160 112,160 202,160 Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings 35,910 150,000 214,000 202,570 $602,480 $551,480 $49,160 200,000 164,000 138,320 Total Additional information: 1. Net income for 2020 was $128,820. No gains or losses were recorded in 2020. 2. Cash dividends of $64,570 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2020 for Sunland Corporation. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND CORPORATION Statement of Cash Flows SUNLAND CORPORATION Statement of Cash Flows Adjustments to reconcile net income to $ $ of bonds outstanding Issued common stock to retire $ LINK T X Determine Sunland Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67.) Current cash debt coverage :1 Cash debt coverage :1 Free cash flow Comment on its liquidity and financial flexibility. liquidity. Its financial flexibility is Sunland has