Question
Sunland Ltd. has recently decided to go public and has hired you as their independent accountant. The company wishes to adhere to IFRS and
Sunland Ltd. has recently decided to go public and has hired you as their independent accountant. The company wishes to adhere to IFRS and know that they must prepare a statement of cash flows. Its financial statements for 2023 and 2022 are provided below: Statements of Financial Position Dec. 31/23 Dec. 31/22 Cash $51000 $23500 Accounts receivable 45500 28000 Merchandise inventory 48000 59000 Property, plant and equipment $76000 $121500 Less accumulated depreciation (40000) 36000 (39500) 82000 Total Assets $180500 $192500 Accounts payable Income taxes payable Bonds payable $22500 $13000 45500 48500 47000 74500 Common shares 26000 26000 Retained earnings 39500 30500 Total Liabilities & Shareholders' Equity $180500 $192500 Income Statement Year ended December 31, 2023 Sales Cost of sales Gross profit Selling and administrative expenses $1051000 895500 155500 100500 Income from operations 55000 Total Liabilities & Shareholders' Equity $180500 $192500 Income Statement Year ended December 31, 2023 Sales Cost of sales Gross profit Selling and administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income The following additional data were provided for calendar 2023: 1. Dividends declared and paid were $18875. $1051000 895500 155500 100500 55000 10500 44500 11125 $33375 2. Equipment was sold for $32000. This equipment originally cost $44500, and had a book value of $35000 at the time of sale. The loss on sale was included in "selling and administrative expenses," as was the depreciation expense for the year. 3. Bonds were retired during the year at par. On a statement of cash flows for calendar 2023, the cash provided by (used in) by financing activities is $18875. O $(46375). O $(27500). O $3000.
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