The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Comparative Balance Sheets 2025 Cash Accounts receivable Inventory Property: plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets Accounts payable Income taxes payable $ 815,000 1.128,000 2024 $700,000 1.168.000 Increase (Decrease) $115,000 (40,000) 1,850,000 1,715.000 135,000 3,307,000 2,967,000 340,000 (1,165,000) (1,040,000) (125,000) 310,000 275,000 35,000 250,000 $6.495.000 $5,785,000 250,000 $710,000 $1,015,000 $ 955,000 $ 60,000 30,000 50.000 (20.000) Dividends payable 80,000 100,000 (20,000) Lease liability 400,000 400,000 Common stock. $1 par 500,000 500.000 Paid-in capital in excess of par-common stock 1,500,000 1,500,000 Retained earnings. 2.970,000 2,680.000 290,000 Total liabilities and stockholders' equity $6.495.000 $5.785.000 $710,000 Additional information: 0 • On December 31, 2024, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2025. On January 2, 2025, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2025, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2026. Net income for 2025 was $370,000. Sullivan declared and paid the following cash dividends for 2025 and 2024. 2024 2025 Declared December 15, 2025 Paid February 28, 2026 Amount $80,000 December 15, 2024 February 28, 2025 $100,000
The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Comparative Balance Sheets 2025 Cash Accounts receivable Inventory Property: plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets Accounts payable Income taxes payable $ 815,000 1.128,000 2024 $700,000 1.168.000 Increase (Decrease) $115,000 (40,000) 1,850,000 1,715.000 135,000 3,307,000 2,967,000 340,000 (1,165,000) (1,040,000) (125,000) 310,000 275,000 35,000 250,000 $6.495.000 $5,785,000 250,000 $710,000 $1,015,000 $ 955,000 $ 60,000 30,000 50.000 (20.000) Dividends payable 80,000 100,000 (20,000) Lease liability 400,000 400,000 Common stock. $1 par 500,000 500.000 Paid-in capital in excess of par-common stock 1,500,000 1,500,000 Retained earnings. 2.970,000 2,680.000 290,000 Total liabilities and stockholders' equity $6.495.000 $5.785.000 $710,000 Additional information: 0 • On December 31, 2024, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2025. On January 2, 2025, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2025, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2026. Net income for 2025 was $370,000. Sullivan declared and paid the following cash dividends for 2025 and 2024. 2024 2025 Declared December 15, 2025 Paid February 28, 2026 Amount $80,000 December 15, 2024 February 28, 2025 $100,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Using the indirect method, prepare a statement of cash flows for Sullivan Corp.
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