The income statement and unclassified statement of financial position for Sunland, Inc. follow SUNLAND, INC. Statement of Financial Position December 31 2018 $98,400 $47,600 122,000 115,500 77,500 123,200 18,300 272,000 253,500 (47,000) (52,800) 2017 Assets Cash Held for trading investments Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Accumulated depreciation 40,100 93,550 26,600 $664,400 $524,050 Total assets Liabilities and Shareholders' Equity Accounts payable Accrued liabilities Bank loan payable Common shares Retained earnings $93,000 $79,300 10,600 7,800 83,800 153,450 230,000 155,000 247,000 128,500 Total liabilities and shareholders' equity $664,400 $524,050 SUNLAND, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses $577,250 187,650 389,600 116,450 273,150 Unrealized gain on held for trading investments $6,500 Interest expense Income before income tax Income tax expense Net income (4,710) 1,790 274,940 50,000 $224,940 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $6,500 was recorded. 3. New equipment costing $80,000 was purchased for $21,900 cash and a $58,100 long-term bank loan payable 4. Old equipment having an original cost of $61,500 was sold for $1,100. 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $47,000 of depreciation expense and a $7,600 loss on disposal of equipment. Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis eg. (15,000).) SUNLAND, INC. Statement of Cash Flows-Direct Method Cash Payments Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by paying $21,900 cash and issuing a $58,100 bank loan payable