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Thx The statement of income and unclassified statement of financial position for Sandhill, Inc. follow: SANDHILL, INC. Statement of Financial Position December 31 Assets 2021
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The statement of income and unclassified statement of financial position for Sandhill, Inc. follow: SANDHILL, INC. Statement of Financial Position December 31 Assets 2021 2020 Cash $99,400 $48,800 Trading investments 123,000 112,500 Accounts receivable 79,500 41,900 Inventory 119,700 92,500 Estimated inventory returns 2,400 2,000 Prepaid expenses 18,500 28,200 Equipment 314,000 284,500 Accumulated depreciation (45,500) (53,800) Total assets $711,000 $556,600 Liabilities and Shareholders' Equity Accounts payable $97,000 $73,900 Property tax payable 10,300 6,800 Refund liability 1,300 900 Bank loan payable-current portion 90,000 143,100 Bank loan payable-noncurrent portion 57,400 37,400 Common shares 210,000 180,000 Retained earnings 245,000 114,500 Total liabilities and shareholders' equity $711,000 $556,600 SANDHILL, INC. Statement of Income Year Ended December 31, 2021 Sales $509,600 Cost of goods sold 185,850 Gross profit 323,750 Operating expenses 116,410 Income from operations 207,340 Other income and expenses Unrealized gain on trading investments $10,500 Interest expense (4,700 ) 5,800 Income before income tax 213,140 Income tax expense 42,000 Net income $171,140 Increase in inventory Decrease in prepaid expenses Increase in accounts payable v Increase in refund liability Increase in property taxes payable Increase in estimated inventory returns Net cash provided by operating activities Cash flows from investing activities Proceeds from disposal of equipment $ Purchase of equipment Net cash used by investing activities Cash flows from financing activities Sale of common shares V $ Repayment of bank loan payable Payment of cash dividends Net cash used by financing activities Net increase in cash Cash, January 1 Net cash used by financing activities > Net increase in cash Cash, January 1 > Cash, December 31 > $ 87000 by Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ paying $24,900 cash and issuing a $62,100 bank loan payable. The statement of income and unclassified statement of financial position for Sandhill, Inc. follow: SANDHILL, INC. Statement of Financial Position December 31 Assets 2021 2020 Cash $99,400 $48,800 Trading investments 123,000 112,500 Accounts receivable 79,500 41,900 Inventory 119,700 92,500 Estimated inventory returns 2,400 2,000 Prepaid expenses 18,500 28,200 Equipment 314,000 284,500 Accumulated depreciation (45,500) (53,800) Total assets $711,000 $556,600 Liabilities and Shareholders' Equity Accounts payable $97,000 $73,900 Property tax payable 10,300 6,800 Refund liability 1,300 900 Bank loan payable-current portion 90,000 143,100 Bank loan payable-noncurrent portion 57,400 37,400 Common shares 210,000 180,000 Retained earnings 245,000 114,500 Total liabilities and shareholders' equity $711,000 $556,600 SANDHILL, INC. Statement of Income Year Ended December 31, 2021 Sales $509,600 Cost of goods sold 185,850 Gross profit 323,750 Operating expenses 116,410 Income from operations 207,340 Other income and expenses Unrealized gain on trading investments $10,500 Interest expense (4,700 ) 5,800 Income before income tax 213,140 Income tax expense 42,000 Net income $171,140 Increase in inventory Decrease in prepaid expenses Increase in accounts payable v Increase in refund liability Increase in property taxes payable Increase in estimated inventory returns Net cash provided by operating activities Cash flows from investing activities Proceeds from disposal of equipment $ Purchase of equipment Net cash used by investing activities Cash flows from financing activities Sale of common shares V $ Repayment of bank loan payable Payment of cash dividends Net cash used by financing activities Net increase in cash Cash, January 1 Net cash used by financing activities > Net increase in cash Cash, January 1 > Cash, December 31 > $ 87000 by Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ paying $24,900 cash and issuing a $62,100 bank loan payableStep by Step Solution
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