Sunland Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Sunland as of May 31, 2017, are as follows. The company is preparing its statement of cash flows. 2016 SUNLAND COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2017 Current assets Cash $28,000 Accounts receivable 74,600 Inventory 218,400 Prepaid expenses 9,100 Total current assets 330,100 $20,200 58,500 249,700 7,000 335,400 Plant assets Plant assets Less: Accumulated depreciation-plant assets Net plant assets Total assets 597,200 150,200 447,000 $777,100 506,700 123,900 382,800 $718,200 Current liabilities Accounts payable Salaries and wages payable Interest payable Total current liabilities $123,800 47,600 26,700 198,100 $115,800 72,700 25,200 213,700 Long-term debt Bonds payable Total liabilities 70,000 268,100 100,000 313,700 Stockholders' equity Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 370,000 139,000 509,000 $777,100 280,000 124,500 404,500 $718,200 SUNLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2017 Sales revenue $1,245,800 Cost of goods sold 715,200 Gross profit 530,600 Expenses Salaries and wages expense Interest expense Depreciation expense Other expenses Total expenses Operating income Income tax expense Net income 249,800 74,200 26,300 8,100 358,400 172,200 42,600 $129,600 The following is additional information concerning Sunland's transactions during the year ended May 31, 2017. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $90,500 were purchased by paying $19,500 in cash and issuing 7,100 shares of stock. 4. The "other expenses" are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Sunland issued 1,900 shares of common stock at par value. 7. Cash dividends of $115,100 were declared and paid at the end of the fiscal year. Prepare a statement of cash flows for Sunland Company for the year ended May 31, 2017, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections 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 (Partial) Cash payments: SUNLAND COMPANY Statement of Cash Flows (Partial) Cash payments: Using the indirect method, calculate only the net cash flow from operating activities for Sunland Company for the year ended May 31, 2017. (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 (Partial) Adjustments to reconcile net income to