* Question 6 The comparative unclassified statement of financial position for Sunland Ltd. follows: SUNLAND LTD. Statement of Financial Position December 31 Assets 2018 Cash $54,000 Accounts receivable 85,000 Inventory 182,000 Long-term investments 79,000 Equipment 265,000 Accumulated depreciation (65,000) Total assets $600,000 2017 $29,000 74,500 195,500 110,000 156,000 (33,000) $532,000 Liabilities and Shareholders' Equity Accounts payable $36,000 Bank loan payable 126,000 Common shares 219,000 Retained earnings 219,000 Total liabilities and shareholders' equity $600,000 $ 45,000 184,000 171,000 132,000 $532,000 Additional information: 1. Net income was $98,700. 2. Sales were $970,000. 3. Cost of goods sold was S758,000. 4. Operating expenses were $44,000, exclusive of depreciation expense. 5. Depreciation expense was $32,000. 6. Interest expense was $14,000. 7. Income tax expense was $29,000. 8. Long-term investments were sold at a gain of $5,700. 9. No equipment was sold during the year. 10. $58,000 of the bank loan was repaid during the year. 11. Common shares were issued for $48,000. 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 LTD. Statement of Cash Flows-Direct Method Cash payments Question Attempts: 0 of 3 used