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The comparative unclassified statement of financial position for Sunland Ltd. follows: SUNLANDLTD. Statement of Financial Position December 31 Assets 2021 Cash $50,000 Accounts receivable 82.000
The comparative unclassified statement of financial position for Sunland Ltd. follows: SUNLANDLTD. Statement of Financial Position December 31 Assets 2021 Cash $50,000 Accounts receivable 82.000 Inventory 175.000 Estimated Inventory returns 7,000 Long-term investments 78,000 Equipment 290,000 Accumulated depreciation (72.000) Total assets $610,000 2020 $30,000 73.000 187.000 4.000 110.000 194.000 (30,000) $568,000 Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity $32,000 8.000 180,000 195.000 195.000 $ 50,000 4,000 205,000 176,000 133.000 $568.000 $ $610.000 Additional information pertaining to 2021 1. 2. 3. 5. Net income was $105.800. Sales were $994.000 Cost of goods sold was $757.000. Operating expenses were $47.000, exclusive of depreciation expense. Depreciation expense was $42.000 nexpertise was Interest expense was $19,000. Income tax expense was $29.000. Long-term investments were sold at a gain of $5.800. No equipment was sold during the year. . $25,000 of the bank loan was repaid during the year. Common shares were issued for $19,000. . 7. 8. 9. 10. 11. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-45,000, or in parenthesis eg. 145,000).) SUNLAND LTD. Statement of Cash Flows-Indirect Method V Adjustments to reconcile net income to $ $ > $ $
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