The financial data for Sunland Company is summarized below. Sunland Company Comparative balance sheets December 31 Assets
Question:
The financial data for Sunland Company is summarized below.
Sunland Company | ||||||
---|---|---|---|---|---|---|
Assets | 2022 | 2021 | ||||
Money | $ 121,200 | $ 72,600 | ||||
accounts receivable | 131,700 | 57,000 | ||||
Inventory | 168,750 | 154,275 | ||||
Prepaid expenses | 42,600 | 39,000 | ||||
long term investments | 207,000 | 163,500 | ||||
plant assets | 427,500 | 363,750 | ||||
Accumulated depreciation | (75.000 | ) | (78,000 | ) | ||
Total | $1,023,750 | $772,125 | ||||
Liabilities and Equity | ||||||
Accounts payable | $ 153,000 | $ 100,950 | ||||
Accumulated charges to pay | 24,750 | 31,500 | ||||
Obligations with the public | 165.000 | 219,000 | ||||
Common actions | 330.000 | 262,500 | ||||
Retained earnings | 351,000 | 158,175 | ||||
Total | $1,023,750 | $772,125 |
Sunland Company | ||||
---|---|---|---|---|
sales revenue | $ 582,690 | |||
Any less: | ||||
cost of goods sold | $203,190 | |||
Operating expenses, excluding depreciation | 18,615 | |||
depreciation expense | 69,750 | |||
Income from tax expenses | 40,920 | |||
Interest expenses | 7,095 | |||
Loss on disposal of plant assets | 11,250 | 350,820 | ||
Net Income | $ 231,870 |
Additional Information:
1. | New plant assets worth $150,000 in cash were purchased during the year. | |
2. | The old plant assets that had an original cost of $86,250 and accumulated depreciation of $72,750 were sold for $2,250 cash. | |
3. | The bonds payable matured and were paid at face value in cash. | |
4. | A cash dividend of $39,045 was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method. (Show the amounts that decrease cash flow with a - sign, such as -15,000, or in parentheses, such as (15,000).)
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso