Answered step by step
Verified Expert Solution
Question
1 Approved Answer
VICW PUIICICS Current Attempt in Progress The income statement and unclassified statement of financial position for Sandhill, Inc. follow: SANDHILL, INC. Statement of Financial Position
VICW PUIICICS Current Attempt in Progress The income statement and unclassified statement of financial position for Sandhill, Inc. follow: SANDHILL, INC. Statement of Financial Position December 31 Assets 2018 Cash $99,400 Held for trading investments 123,000 Accounts receivable 79,500 Inventory 122,100 Prepaid expenses 18,500 Property, plant, and equipment 314,000 Accumulated depreciation (45,500) Total assets $711,000 Liabilities and Shareholders' Equity Accounts payable $97,000 Accrued liabilities 11,600 Bank loan payable 127,400 Common shares 230,000 Retained earnings 245,000 Total liabilities and shareholders' equity $711,000 2017 $48,800 112,500 41,900 94,500 28,200 284,500 (53,800) $556,600 $73,900 7,700 180,500 180,000 114,500 $556,600 $509,600 185,850 323,750 116,410 SANDHILL, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $10,500 Interest expense (4,700) Income before income tax Income tax expense Net income 207,340 5,800 213,140 42,000 $171,140 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $10,500 was recorded. 3. New equipment costing $87,000 was purchased for $24,900 cash and a $62,100 long-term bank loan payable. 4. Old equipment having an original cost of $57,500 was sold for $1,600. 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 $46,100 of depreciation expense and a $1,500 loss on disposal of equipment. (a) Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g.-15 parenthesis e.g. (15,000).) SANDHILL, INC. Statement of Cash Flows-Direct Method Year Ended December 31, 2018 4 Cash flows from operating activities Cash receipts from customers $ Cash Payments To suppliers For operating expenses For interest For income taxes by paying $24,900 cash Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ and issuing a $62,100 bank loan payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started