The statement of income and unclassified statement of financial position for Sunland, Inc follow SUNLAND, INC. Statement of Financial Position December 31 Assets 2021 Cash $98.400 Trading investments 122,000 Accounts receivable 77.500 Inventory 120,200 Estimated inventory returns 3,000 Prepaid expenses 18,300 Equipment 272,000 Accumulated depreciation (47,000) Total assets $664,400 Liabilities and Shareholders' Equity Accounts payable $93,000 Property tax payable 9,400 Refund liability 1,200 Bank loan payable-current portion 61,000 Bank loan payable-noncurrent portion 42,800 Common shares 210,000 Retained earnings 247,000 Total liabilities and shareholders' equity $664,400 2020 $47,600 115,500 40,100 91,150 2,400 26,600 253,500 (52.800) $524,050 $79,300 6,900 W 900 100,650 22,800 185,000 128,500 $524,050 SUNLAND, INC. Statement of Income Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investments $6,500 Interest expense (4.710) Income before income tax Income tax expense Net income $577,250 187,650 389,600 116,450 273,150 1.790 274,940 50,000 $224,940 1. 2 3. Additional information regarding 2021: Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $80,000 was purchased for $21.900 cash and a $58.100 long-term bank loan payable. old equipment having an original cost of $61,500 was sold hy $1,100. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. A dividend was paid during the year 7. Operating expenses include $47,000 of depreciation experts and a $7,600 loss on disposal of equipment Common shares were issued for $43,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. 4. 5. 6. B. Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a- skanes -15.000 or in parenthesis eg. (15,000) SUNLAND, INC. Statement of Cash Flows Year Ended December 31, 2021 Adjustments to reconcile net income to $ > $