Exercise 23-17 (Part Level Submission) SUNLAND INC. BALANCE SHEET DECEMBER 31, 2
ID: 2520014 • Letter: E
Question
Exercise 23-17 (Part Level Submission)
SUNLAND INC.
BALANCE SHEET
DECEMBER 31, 2016
$8,400
$14,900
28,900
25,700
20,000
25,000
67,400
75,000
39,600
23,700
$164,300
$164,300
(a)
Exercise 23-17 (Part Level Submission)
Sunland Inc., had the following condensed balance sheet at the end of operations for 2016.SUNLAND INC.
BALANCE SHEET
DECEMBER 31, 2016
$8,400
Current liabilities$14,900
Current assets other than cash28,900
Long-term notes payable25,700
Equity investments20,000
Bonds payable25,000
Plant assets (net)67,400
Common stock75,000
Land39,600
Retained earnings23,700
$164,300
$164,300
During 2017, the following occurred.
1. A tract of land was purchased for $9,100. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,500 were paid to stockholders. 5. Net income was $30,500 after allowing depreciation of $13,400. 6. Land was purchased through the issuance of $22,400 in bonds. 7. Sunland Inc. sold part of its investment portfolio for $12,700. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2017. 8. Both current assets (other than cash) and current liabilities remained at the same amount.
Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Income 30,500.00 Gain on sale of investment portfolio (2,000.00) Cash flow from operating activities 28,500.00 Cash flow from Investing activities Purchase of Land (9,100.00) Sale of investment 12,700.00 Cash flow from Investing activities 3,600.00 Cash flow from Financing activities Issue of Stock 10,000.00 Redemption of bonds payable (15,000.00) Dividends Paid (9,500.00) Cash flow from Financing activities (14,500.00) net change in cash and cash equivalents 17,600.00 Opening cash and cash equivalents 8,400.00 Closing cash and cash equivalents 26,000.00
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