The income statement of Sunland Company is shown below. SUNLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,980,000 Cost of goods sold Beginning inventory $1,850,000 Purchases 4,580,000 Goods available for sale 6,430,000 Ending inventory 1,570,000 Cost of goods sold 4,860,000 Gross profit 2,120,000 Operating expenses Selling expenses 410,000 Administrative expenses 760,000 1,170,000 Net income $950,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Sunland Company, using the indirect method. (15,000).) SUNLAND COMPANY Statement of Cash Flows (Partial) choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustments select a closing section name $enter a total amount for the section
The income statement of Sunland Company is shown below. SUNLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,980,000 Cost of goods sold Beginning inventory $1,850,000 Purchases 4,580,000 Goods available for sale 6,430,000 Ending inventory 1,570,000 Cost of goods sold 4,860,000 Gross profit 2,120,000 Operating expenses Selling expenses 410,000 Administrative expenses 760,000 1,170,000 Net income $950,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Sunland Company, using the indirect method. (15,000).) SUNLAND COMPANY Statement of Cash Flows (Partial) choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustments select a closing section name $enter a total amount for the section
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.8MCP
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Question
100%
The income statement of Sunland Company is shown below.
SUNLAND COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||||
---|---|---|---|---|
Sales revenue
|
$6,980,000
|
|||
Cost of goods sold
|
||||
Beginning inventory
|
$1,850,000
|
|||
Purchases
|
4,580,000
|
|||
Goods available for sale
|
6,430,000
|
|||
Ending inventory
|
1,570,000
|
|||
Cost of goods sold
|
4,860,000
|
|||
Gross profit
|
2,120,000
|
|||
Operating expenses
|
||||
Selling expenses
|
410,000
|
|||
Administrative expenses
|
760,000
|
1,170,000
|
||
Net income
|
$950,000
|
Additional information:
1. | Accounts receivable decreased $300,000 during the year. | |
2. | Prepaid expenses increased $170,000 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $260,000 during the year. | |
4. | Accrued expenses payable decreased $120,000 during the year. | |
5. | Administrative expenses include |
Prepare the operating activities section of the statement of
(15,000).)
SUNLAND COMPANY
Statement of Cash Flows (Partial) choose the accounting period |
||
---|---|---|
select an opening section name
|
||
select an item
|
$enter a dollar amount
|
|
Adjustments to reconcile net income to
|
||
select a subsection name
|
||
select an item
|
$enter a dollar amount
|
|
select an item
|
enter a dollar amount
|
|
select an item
|
enter a dollar amount
|
|
select an item
|
enter a dollar amount
|
|
select an item
|
enter a dollar amount
|
|
select an item
|
enter a dollar amount
|
|
enter a subtotal of the adjustments
|
||
select a closing section name
|
$enter a total amount for the section
|
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