Question

The following information is available for Sunland Company for the year ended on December 31, 2022. Beginning cash balance $ 20,400 Accounts payable increase 4,845 Depreciation expense 34,850 Accounts receivable decrease 4,080 Inventory decrease 2,635 Net income 48,620 Cash received for sale of land at book value 88,400 Cash dividends paid 32,300 Income taxes payable decrease 3,315 Cash used to purchase land 68,850 Cash used to redeem bonds 56,100 Cash received from issuing stock 136,000. Prepare a statement of cash flows using the indirect method

Answer 1

Answer:

Explanation:

                                Sunland Company

                           Statement of Cash Flow

                                                                $          $  

Cash Flow from Operating Activities

Net Income                                                     48,620  

Depreciation Expense                        34,850

Increase in Account Payable               4,845

Decrease in account receivable         4,080

Decrease in Inventory                          2,635  

Net Cash Flow from Operating Activities     46,410  

Cash Flow from Investing Activities

Sale of land                                           88,400

Purchase of land                                 (68,850)

Net Cash Flow from Investing Activities       19,550

Cash Flow from Financing Activities

Dividend paid                                       (32,300)  

Decrease in tax payable                         (3,315)

Bond Redeemed                                 (56,100)

Stock Issued                                         136,000

Net Cash Flow from Financing Activities     44,285  

Total Net cash flows                                        158,865

Cash balance on January 1,2022                   20,400  

Cash balance on December 31,2022           179,265