*Question 5 The comparative unclassified statement of financial position for Sunland Ltd. follows: SUNLAND LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $54,000 $29,000 Accounts receivable 85,000 74,500 Inventory 182,000 195,500 Long-term investments 79,000 110,000 Equipment 265,000 156,000 (65,000) $600,000 $532,000 Accumulated depreciation (33,000) Total assets Liabilities and Shareholders' Equity Accounts payable Bank loan payable S36,000 $45,000 126,000 184,000 219,000 171,000 Common shares Retained eamings 132,000 219,000 $532,000 Total liabilities and shareholders' equity $600,000 Additional information: Net income was $98,700 1. Sales were $970,000 2 Cost of goods sold was $7588,000 3. 4. Operating expenses were $44,000, exclusive of depreciation expense. Depreciation expense was $32,000 5. Interest expense was $14,000 6. Income tax expense was $29,000 Long-term investments were sold at a gain of $5,700. 7. 8. No equipment was sold during the year $58,000 of the bank loan was repaid during the year 9. 10 Common shares were issued for $48,000 11 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) SUNLAND LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to Question Attempts: 0 of 3 used