Question 1
The statement of incorne and unclassified statement of financial position for Sunland Inc. follow:
Additional information regarding 2024:
Long-term investments were sold for $4,600, resulting in a realized loss of $10,700.
New equipment costing $140,000 was purchased for $69,600 cash and a $70,400 bank loan payable.
Equipment costing $55,500 was sold for $15,600, resulting in a gain of $10,300.
Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses.
A dividend was paid during the year.
Operating expenses include $59,200 of depreciation expense and an $10,300 gain on disposal of equipment.
The company issued common shares for $60,000 cash and bought back and retired some other common shares at the cost they were originally issued at.
(a) Prepare the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Cash Payments
âś“$
$
$82.600 862.200 133,000 1L7X 92,700 286,500
47,300
306,00 1.090 108.400 204.00
5629.750 $457.790
$63.400 11,100
548.500 18.300
127.800 13:900
60.530 10.300
175,4(0 115;84) 457.790
255,406 31.700 13,300
23,700 111,00( 27.619