Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with eit sign e.g.-15,000 or in parenthesis e.g. (15,000).) Adjustments to reconcile net income to SUNLAND INC. STATEMENT OF CASH FLOWS S

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -
sign e.g.-15,000 or in parenthesis e.g. (15,000).)
Adjustments to reconcile net income to
SUNLAND INC.
STATEMENT OF CASH FLOWS
$
$
SUPPORT
Transcribed Image Text:Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Adjustments to reconcile net income to SUNLAND INC. STATEMENT OF CASH FLOWS $ $ SUPPORT
Sunland Inc., a greeting card company, had the following statements prepared as of December 31, 2025.
Cash
Accounts receivable
Short-term debt investments (available-for-sale)
Inventory
Prepaid rent
Equipment.
Accumulated depreciation-equipment
Copyrights
Total assets
Accounts payable
Income taxes payable
Salaries and wages payable
Short-term loans payable
Long-term loans payable
Common stock, $10 par
Paid-in capital, common stock
Retained earnings
Sunland Inc.
Comparative Balance Sheet
As of December 31, 2025 and 2024
Total liabilities and stockholders' equity
Sales revenue
Cost of goods sold
Gross profit
Operating expenses
Operating income
Interest expense
Gain on sale of equipment
Income before tax
Income tax expense
Net income
Sunland Inc.
Income Statement
For the Year Ending December 31, 2025
Additional information:
1.
3.
4.
$11,300
2,000
12/31/25
$5,900
$338,150
175,700
162,450
119,400
43,050
9,300
153,300
129,100
(35,000)
(24,800)
46,300
50,300
$312,900 $294,700
33,750
62,000
35,000
40,400
6,750
5,000
6,100
4,100
10,100
69,600
100,000
30,000
55,600
34,600
$312,900 $294,700
$27,000
12/31/24
$7,100
51,000
18,100
8,100
59,900
4,000
$46,500 $40,200
4,100
8,000
60,600
100,000
30,000
Dividends in the amount of $6,000 were declared and paid during 2025.
2. Depreciation expense and amortization expense are included in operating expenses.
No unrealized gains or losses have occurred on the investments during the year.
Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025.
:
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-
sign e.g.-15,000 or in parenthesis e.g. (15,000).)
Transcribed Image Text:Sunland Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment. Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Paid-in capital, common stock Retained earnings Sunland Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Total liabilities and stockholders' equity Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Sunland Inc. Income Statement For the Year Ending December 31, 2025 Additional information: 1. 3. 4. $11,300 2,000 12/31/25 $5,900 $338,150 175,700 162,450 119,400 43,050 9,300 153,300 129,100 (35,000) (24,800) 46,300 50,300 $312,900 $294,700 33,750 62,000 35,000 40,400 6,750 5,000 6,100 4,100 10,100 69,600 100,000 30,000 55,600 34,600 $312,900 $294,700 $27,000 12/31/24 $7,100 51,000 18,100 8,100 59,900 4,000 $46,500 $40,200 4,100 8,000 60,600 100,000 30,000 Dividends in the amount of $6,000 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. : Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a- sign e.g.-15,000 or in parenthesis e.g. (15,000).)
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