Sunland Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SUNLAND INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5,900 $7,000 Accounts receivable 61.500 51,400 35,400 17,800 Short-term debt investments (available-for-sale) Inventory 39,900 60,400 Prepaid rent 4,900 3.900 155,300 131,000 Equipment Accumulated depreciation-equipment Copyrights (34,700) (25,200) 45,900 49,900 Total assets $314,100 $296,200 Accounts payable $46,500 $39,600 4,100 5.900 8.100 4,100 8,000 9.900 Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock $10 par Contributed capital, common stock Retained earnings 60,600 68,600 100,000 100,000 30,000 30,000 56,800 38,100 Total liabilities & stockholders' equity $314,100 $296,200 SUNLAND INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $335,275 Cost of goods sold 173.900 Gross profit 161,375 Operating expenses 121,000 Operating income 40,375 Interest expense $11,500 Gain on sale of equipment 2,000 9.500 Income before tax 30,875 Income tax expense 6,175 Net income $24,700 Additional information: 1. 2. Dividends in the amount of $6,000 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2020. 3. 4. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a-signe.g.-15,000 or in parenthesis e.g. (15,000).) SUNLAND INC. Statement of Cash Flows > >