Sunland Company has recently decided to go public and has hired you as an independent CPA....
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Sunland Company has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sunland Company for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Sales revenue Cost of sales BALANCE SHEETS Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income $608000 (321000) INCOME STATEMENT For the Year Ended December 31, 2022 The following additional data were provided: 12/31/22 $406000 359000 386000 287000 $1438000 $ 176000 350000 359000 191250 361750 $1438000 The net cash provided by operating activities is $600000 191000 $962000 (304000) $8420000 7152000 1268000 791000 477000 72000 405000 101250 $303750 12/31/21 $ 194000 217000 479000 658000 $1548000 $ 94000 392000 598000 216000 248000 $1548000 1. Dividends for the year 2022 were $190000. 2. During the year, equipment was sold for $242000. This equipment cost $353000 originally and had a book value of $287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Sunland Company has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sunland Company for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Sales revenue Cost of sales BALANCE SHEETS Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income $608000 (321000) INCOME STATEMENT For the Year Ended December 31, 2022 The following additional data were provided: 12/31/22 $406000 359000 386000 287000 $1438000 $ 176000 350000 359000 191250 361750 $1438000 The net cash provided by operating activities is $600000 191000 $962000 (304000) $8420000 7152000 1268000 791000 477000 72000 405000 101250 $303750 12/31/21 $ 194000 217000 479000 658000 $1548000 $ 94000 392000 598000 216000 248000 $1548000 1. Dividends for the year 2022 were $190000. 2. During the year, equipment was sold for $242000. This equipment cost $353000 originally and had a book value of $287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category.
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To prepare the statement of cash flows for Sunland Company we need to analyze the changes in the c... View the full answer
Related Book For
Management A Practical Introduction
ISBN: 978-0078112713
5th edition
Authors: Angelo Kinicki, Brian Williams
Posted Date:
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