Presented here are the financial statements of Sunland Company. SUNLAND COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,400 $20,500 Accounts receivable 32,900 18,100 Inventory 30,600 20,000 Property, plant, and equipment 59,700 77,900 Accumulated depreciation (29,100) (23,500) Total $131,500 $113,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable $28,300 $16,500 7,500 8,200 27,900 32,800 Chapter 17, Part 3 Question 2 of 2 Bonds payable Common stock HAND Retained earnings Total 27,900 32,800 18,600 14,200 49,200 41,300 $131,500 $113,000 SUNLAND COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241,800 Cost of goods sold 175,200 Gross profit 66,600 Selling expenses $18,450 Administrative expenses 6,150 24,600 Income from operations 42,000 Interest expense 3,900 Income before income taxes 38,100 Question 2 of 2 < -/50 Interest expense 3,900 Income before income taxes 38,100 Income tax expense 7.620 Net income $30,480 Additional data: 1. Depreciation expense was $17,100. 2. Dividends declared and paid were $22,580. 3. 4. 5. During the year, equipment was sold for $6,700 cash. This equipment originally cost $18,200 and had accumulated depreciation of $11,500 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. (a)