Question

Sunland Corporation had the following activities in 2017.

Concord Company’s income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $843,000 Operating expenses (excluding depreciation) $622,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 708,000 Income before income taxes 135,000 Income tax expense 40,000 Net income $95,000 Concord’s balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable $36,000 $55,000 Accounts payable 43,000 33,000 Income taxes payable 4,200 8,200 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. CONCORD COMPANY Statement of Cash Flows (Partial) December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash Payments for Operating ExpensesIncrease in InventoryDecrease in Accounts ReceivableDividends ReceivedDecrease in InventoryIncrease in Accounts ReceivableIncrease in Accounts PayableDecrease in Accounts PayableCash Receipts from CustomersInterest PaidTaxes PaidCash Payments for Income Taxes $     Decrease in Accounts Payable    Cash Payments for Income Taxes    Cash Receipts from Customers    Dividends Received    Cash Payments for Operating Expenses    Interest Paid    Decrease in Inventory    Taxes Paid    Increase in Accounts Receivable    Decrease in Accounts Receivable    Increase in Accounts Payable    Increase in Inventory     $     Dividends Received    Cash Payments for Operating Expenses    Cash Receipts from Customers    Interest Paid    Decrease in Accounts Receivable    Cash Payments for Income Taxes    Increase in Inventory    Increase in Accounts Receivable    Decrease in Inventory    Decrease in Accounts Payable    Increase in Accounts Payable    Taxes Paid     Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash $

Compute the amount Sunland should report as net cash provided (used) by financing activities in its 2017 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Net cash usedprovided by financing activities

$

Answer 1

CONCORD COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2017
Cash Flows from Operating Activities
Cash Receipts from Customers		862000
Cash Payments for Operating Expenses	-612000
Cash Payments for Income Taxes	-44000
		-656000
Net Cash Provided by Operating Activities		206000

Working:

Cash Receipts from Customers:
Service revenue	843000
Add: Decrease in Accounts receivable	19000
	862000
Cash Payments for Operating Expenses:
Operating expenses	622000
Less: Increase in Accounts payable	10000
	612000
Cash Payments for Income Taxes:
Income tax expense	40000
Add: Decrease in Income taxes payable	4000
	44000