2. COMPUTE FREE CASH FLOW

Sheridan Company's comparative balance sheets are presented below: 2019 Sheridan Company Comparative Balance Sheets December 31 2020 Cash $ 16,900 Accounts receivable 24,900 Investments 20,250 Equipment 59,750 Accumulated depreciation equipment (14,150) Total $107,650 $ 17,300 22,100 16,050 69,850 (10,500) $114,800 Accounts payable Bonds payable Common stock Retained earnings Total $ 14,850 11,000 49,900 31,900 $107,650 $ 11,250 30,200 45,200 28,150 $114,800 Additional information: 1. Net income was $18,250. Dividends declared and paid were $14,500. 2. Equipment which cost $10,100 and had accumulated depreciation of $1,700 was sold for $3,600. 3. No noncash investing and financing activities occurred during 2020. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - signe.g. -45,000, or in parenthesis e.g. (45,000).) Sheridan Company Statement of Cash Flows Adjustments to reconcile net income to Save for Later Attempts: 0 of 3 used Submit