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The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to
The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Question 4 of 4 /30 Additional information: 1. On December 31,2024 , Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. 2. During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31,2025. 3. On January 2,2025 , Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. 4. On December 31,2025 , Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2,2026. 5. Net income for 2025 was $370,000. 6. Sullivan declared and paid the following cash dividends for 2025 and 2024. Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2025, using the indirect method. (Show amoun that decrease cash flow with either a - sign e.g. 15,000 or in parenthesis e.g. (15,000)
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