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 7.000 8,000 Income taxes payable Bonds payable 26,400 33.900 Common stock 18,100 14,900 Retained earnings 49,200 40,400 AAA 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 41,600 Income from operations Interest expense 2,400 Income before income taxes 39,200 Income tax expense 7,840 Net income $31,360 Additional data: 1. 2 3. 3. Depreciation expense was $16,300. Dividends declared and paid were $22,560. 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. Bonds were redeemed at their carrying value Common stock was issued at par for cash. 4 4. 5. Further analysis reveals the following. 1 Accounts payable pertain to merchandise suppliers. All operating expenses except for depreciation were paid in cash. 2 3 All depreciation expense is in the selling expense category. All sales and inventory purchases are on account. Prepare a statement of cash flows for Sunland Company using the direct method. (Show amounts that decrease cash flow with either a - signe.g.-15,000 or in parenthesis eg. (15,000).) SUNLAND COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers V 227900 Add cash payments: 173400 2400 > 3200 22560 29260 16100 29260 16100 20800 $ 36900