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The following are Sullivan Corp's comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase(decrease) from 2016 to 2017.
The following are Sullivan Corp's comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase(decrease) from 2016 to 2017. Additional Information: On December 31, 2016, Sullivan acquired 25% of Myners 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, 2017. No dividend was paid on Myers's common stock during the year. During 2017, sullivan loaned $300,000 to TLC Co., unrelated Company. TLC made the first semiannual principle repayment of $50,000, plus interest at 10%, on December 31, 2017. On January 2, 2017, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2017, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $4000,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2018. Net income for 2017 was $370,000. Sullivan declared and paid the following cash dividends for 2017 and 2016. 2017 2016 Declared December 15, 2017 December 15, 2016 Paid February 26, 2018 February 28, Amount $60,000 $100,000 Instructions Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2017, using the indirect method
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