✓ CPT 22 HW W Question 8 of 10 - CPT 22 HW W Videoplayer ← CPT 22 HW Question 8 of 10 The income statement of Sunland Company is shown below. Sunland Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,930,000 Cost of goods sold Beginning inventory $1,890,000 Purchases 4,410,000 Goods available for sale 6,300,000 Ending inventory 1,590,000 Cost of goods sold 4,710,000 Gross profit 2,220,000 education.wiley.com W Player Ending inventory Cost of goods... - / 1 E + b Vaughn Corporation had the foll... Operating expenses Selling expenses 450,000 SUPPORT Administrative expenses 700,000 1,150,000 Net income $1,070,000 ✓ CPT 22 HW W Question 8 of 10 - CPT 22 HW W Videoplayer ← CPT 22 HW education.wiley.com + W Player Ending inventory Cost of goods... b Vaughn Corporation had the foll... Question 8 of 10 < 1. Accounts receivable decreased $370,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $290,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method. SUNLAND COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Cash Receipts from Customers Cash Payments to Suppliers Cash Payments for Operating Expenses A A 7300000 - / 1 E SUPPORT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The income statement of Sunland Company is shown below.

Sunland Company

Income Statement

For the Year Ended December 31, 2025

Sales revenue $6,930,000

Cost of goods sold

Beginning inventory $1,890,000

Purchases 4,410,000

Goods available for sale 6,300,000

Ending inventory 1,590,000

Cost of goods sold 4,710,000

Gross profit 2,220,000

Operating expenses 450,000

Selling expenses 450,000

Administrative expenses 700,000 1,150,000

Net income $1,070,000

1.Accounts receivable decreased $370,000 during the year.
2. Prepaid expenses increased $160,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $290,000 during the year.
4. Accrued expenses payable decreased $90,000 during the year.
5. Administrative expenses include depreciation expense of $50,000.
Prepare the operating activities section of the statement of cash flows using the direct method.