Blake Weaver Sunland Enterprises controller is preparing the

Blake Weaver, Sunland Enterprises\' controller, is preparing the financial statements for 2016. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: On December 31, 2016, Sunland sold a piece of equipment with an original cost of $26,000 for On February 1, 2016, Sunland issued $107,930 of common stock to raise cash in anticipation o On February 2, 2016, Sunland took out a ten-year $75,040 long-term loan to provide the $30,820 cash. The equipment had a book value of $13,210 the purchase of a new building later in the year. remaining funds needed to purchase the building On May 15, 2016, Sunland paid $145,410 for the new building The company repaid $4,720 of the long-term debt before the end of the year Sunland Enterprises Income Statement For the Year Ended December 31, 2016 Sales revenue 1,070,700 17,610 1,088,310 708,200 ain on equipment sale Total revenue Cost of goods sold Operating expenses Depreciation expense Interest expense Wages expenses Other expenses 30,330 7,770 175,01 229,310 150,800 63,580 $87,220 16,200 Income before taxes ax expense Net income Sunland Enterprises Comparative Balance Sheets As of December 31, 2016 2016 129,800 126,600 2015 ash Accounts receivable, net Inventory $ 43,600 287,350270,370 95,410 543,750 409,380 299,800167,600 69,000 98,600 Total current assets Property, plant, & equipment Accumulated depreciation 99,330 200,470 Net property, plant, & equipment Total assets 744,220507,980 Accounts payable 150,170175,750 21,330 0 238,170197,080 Taxes payable Mortgage payable 17,680 70,320 Total liabilities

Solution

Statement of cash flow

for the year ended decemebr 31,2016

Increase in accounts receivable [270370-287350]

Statement of cash flow for the year ended decemebr 31,2016
cash flow from operating activity
Net Income		87220
Adjustment to reconcile net income to net cash provided
Depreciation (non cash)	30330
Gain on sale of equipment	-17610
Increase in accounts receivable [270370-287350]	-16980
Increase in inventory [95410-126600]	-31190
decrease in accounts payable [150170-175750]	-25580
decrease in tax payable [17680-21330]	-3650	-64680
Net cash provided by operating activity		22540
cash flow from investing activity
sale of equipment	30820
purchase of building	-145410
net cash used by investing activity		-114590
cash flow from financing activity
isue of common stock	107930
increase in mortgage payable	70320
net cash provided by financing activity		178250
Increase /(decrease) in cash [22540-114590+178250]		86200
Beginning cash balance		43600
Ending cash balance		129800