CALCULATOR PINTER VERSION NEXT URCES 01 02 06 Problem 12-08A a-b (Part Level Submission) The following are the financial statements of Sheffield Corp.. Sheffield Corp. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $37,900 $20,400 Accounts receivable 32,700 20,000 Inventory 29,300 20,400 Equipment 59,800 78,000 Accumulated depreciation equipment (30,000) (23,800) Total $129,700 $115,000 10 deo) 02 08 12 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,300 $16.900 7.500 8,100 27,300 32,100 18,300 13.400 48,300 44.500 $129,700 $115,000 Study Sheffield Corp. Income Statement For the Year Ended December 31, 2020 Sales revenue $241,200 Cost of goods sold 175,900 Gross profit 65,300 Operating expenses 24,600 Income from operations 40,700 Interest expense 3,300 Income before income taxes 37,400 Income tax expense 7,000 Net Income $30,400 Additional data: 1. Dividends declared and paid were $26,600. During the year, equipment was sold for $8,900 cash. This equipment cost $18,200 originally and had a book value of $8,900 at the time of sale. 3. All depreciation expense, $15,500, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. (a) Your answer is partially correct. Try again. Prepare a statement of cash flows for Sheffield Corp. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Sheffield Corp. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Receipts from Customers 228500 cash payments To Suppliers (173400) For Operating Expenses (91001 For Interest (3300) For Income Taxes (76000 (193400) Net Cash Provided by Operating Activities 35100 Cash Flows from Investing Activities Sale of Equipment 8900 Cash Flows from Financing Activities Payment of Dividends (25600) Issuance of Common Stock 4900 Redemption of Bonds (4800) Net Cash Provided by Financing Activities (26500) Net Increase in Cash 175001 Cash at Beginning of Period 20400 37900 Cash at End of Period SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 2 used Attempts: 2 of 2 used (b) x Your answer is incorrect. Try again. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow 35100 Attempts: 1 of 2 used
