Question
Presented here are the financial statements of Sunland Company. SUNLAND COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,900 $20,800 Accounts receivable 32,800
Presented here are the financial statements of Sunland Company. SUNLAND COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,900 $20,800 Accounts receivable 32,800 18,100 Inventory 29,300 20,700 Property, plant, and equipment 59,400 77,700 Accumulated depreciation (29,300) (23,500) Total $129,100 $113,800 Liabilities and Stockholders Equity Accounts payable $28,400 $ 16,600 Income taxes payable 7,000 8,000 Bonds payable 26,400 33,900 Common stock 18,100 14,900 Retained earnings 49,200 40,400 Total $129,100 $113,800 SUNLAND COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $242,600 Cost of goods sold 176,600 Gross profit 66,000 Selling expenses $18,300 Administrative expenses 6,100 24,400 Income from operations 41,600 Interest expense 2,400 Income before income taxes 39,200 Income tax expense 7,840 Net income $31,360 Additional data: 1. Depreciation expense was $16,300. 2. Dividends declared and paid were $22,560. 3. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,300 and had accumulated depreciation of $10,500 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is partially correct. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND COMPANY Statement of Cash Flows choose the accounting period December 31, 2022 select an opening name for section one Cash Flows from Operating Activities select an item Net Income $enter a dollar amount 31,300 Adjustments to reconcile net income to select a subsection name Cash Flows from Operating Activities select an item Depreciation Expense $enter a dollar amount 14,500 select an item Increase in Accounts Receivable enter a dollar amount (14,700) select an item Increase in Inventory enter a dollar amount (8,600) select an item Increase in Accounts Payable enter a dollar amount 11,8000 select an item Decrease in Income Taxes Payable enter a dollar amount (1,000) enter a subtotal of the adjustments select a closing name for section one Cash Flows from Operating Activities enter a total amount for section one select an opening name for section two select an item enter a dollar amount select a closing name for section two enter a total amount for section two select an opening name for section three select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section three enter a total amount for section three select an item enter a total amount for three sections select an item enter a dollar amount select a closing name for this statement $enter a total of the two previous amounts eTextbook and Media Last saved 1 second ago.Attempts: 1 of 5 used (b) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free Cash Flow $enter the free cash flow in dollars
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