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11. Financial statements for Sunland Company are given below:

Sunland Company
Balance Sheet
January 1, 2021
Assets				Equities
Cash		$ 957000		Accounts payable		$ 460000
Accounts receivable		863000
Buildings and equipment		3660000
Accumulated depreciation buildings and equipment		(1180000	)	Common stock		2760000
Patents		434000		Retained earnings		1514000
		$4734000				$4734000

Sunland Company
Statement of Cash Flows
For the Year Ended December 31, 2021
Increase (Decrease) in Cash
.
Cash flows from operating activities
	Net income						$1280000
	Adjustments to reconcile net income to net cash provided by operating activities:
		Increase in accounts receivable		$(380000	)
		Increase in accounts payable		194000
		Depreciationbuildings and equipment		357000
		Gain on sale of equipment		(148000	)
		Amortization of patents		51000			74000
Net cash provided by operating activities							1354000
.
Cash flows from investing activities
	Sale of equipment			290000
	Purchase of land			(594000	)
	Purchase of buildings and equipment			(1149000	)
Net cash used by investing activities							(1453000)
.
Cash flows from financing activities
	Payment of cash dividend			(361000	)
	Sale of common stock			961000
Net cash provided by financing activities							600000
Net increase in cash							501000
Cash, January 1, 2021							957000
Cash, December 31, 2021							$1458000

Total assets on the balance sheet at December 31, 2021 are $6653000. Accumulated depreciation on the equipment sold was $334000. When the equipment was sold, the Buildings and Equipment account received a credit of

a. $618000.

b. $334000.

c. $476000.

d. $290000.

12. Crane Company reported net income of $59000 for the year ended December 31, 2021 Included in net income were depreciation expense of $8000 and a gain on sale of equipment of $1600. Each of the following accounts increased during 2021:

Accounts receivable	$2100
Inventory	$4700
Prepaid rent	$6500
Available-for-sale securities	$1600
Accounts payable	$4700

What is the amount of cash provided by operating activities for Crane Company for the year ended December 31, 2021?

a. $56800

b. $55200

c. $58400

d. $47800

13. Sheridan Company has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sheridan Company for 2022 and 2021 are provided below.

BALANCE SHEETS
						12/31/22					12/31/21
	Cash					$407000					$ 193000
	Accounts receivable					362000					214000
	Inventory					382000					482000
	Property, plant and equipment		$609000					$960000
	Less accumulated depreciation		(321000	)		288000		(306000	)		654000
						$1439000					$1543000
.
	Accounts payable					$ 176000					$ 97000
	Income taxes payable					351000					394000
	Bonds payable					359000					602000
	Common stock					217000					215000
	Retained earnings					336000					235000
						$1439000					$1543000

INCOME STATEMENT For the Year Ended December 31, 2022
	Sales revenue								$8410000
	Cost of sales								7153000
	Gross profit								1257000
	Selling expenses						$599000
	Administrative expenses						194000		793000
	Income from operations								464000
	Interest expense								72000
	Income before taxes								392000
	Income taxes								98000
	Net income								$ 294000

The following additional data were provided:

	1.	Dividends for the year 2022 were $193000.
	2.	During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
	3.	All depreciation expense is in the selling expense category.

The net cash provided by operating activities is

a. $294000.

b. $246000.

c. $407000.

d. $203000.

14. The balance in retained earnings at December 31, 2020 was $1433000 and at December 31, 2021 was $1162000. Net income for 2021 was $1063000. A stock dividend was declared and distributed which increased common stock $504000 and paid-in capital $185000. A cash dividend was declared and paid. The amount of the cash dividend was

a. $645000.

b. $511000.

c. $830000.

d. $1334000.

15. Coronado Industries provided the following information on selected transactions during 2021:

	Dividends paid to preferred stockholders		$ 505000
	Loans made to affiliated corporations		1440000
	Proceeds from issuing bonds		1580000
	Proceeds from issuing preferred stock		2060000
	Proceeds from sale of equipment		790000
	Purchases of inventories		2430000
	Purchase of land by issuing bonds		608000
	Purchases of treasury stock		1250000

The net cash provided (used) by investing activities during 2021 is

a. $(1250000).

b. $182000.

c. $790000.

d. $(650000).

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