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The income statement of Sunland Company is shown below. $6,840,000 SUNLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of
The income statement of Sunland Company is shown below. $6,840,000 SUNLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Beginning inventory $1,920,000 Purchases 4,390,000 Goods available for sale 6,310,000 Ending inventory 1,580,000 Cost of goods sold Gross profit Operating expenses Selling expenses 460,000 Administrative expenses 710,000 Net income 4,730,000 2,110,000 1,170,000 $940,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method. SUNLAND COMPANY Statement of Cash Flows (Partial)
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