Comparative balance sheet accounts of Sheridan Company are presented below. SHERIDAN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances Cash Accounts Receivable Inventory Debt investments (available-for-sale) Equipment Buildings Land 2017 2016 $70,000 $50,600 155,300129,000 61,600 85,100 48,200 145,200145,200 25,100 $610,500 $544,800 75,600 54,700 69,700 40,000 Totals Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings $8,000 14,000 27,800 59,500 9,900 70,000 310,000260,000 95,600 $610,500 $544,800 $10,100 20,900 37,100 65,300 12,000 62,000 93,100 Totals Additional data: I. Equipment that cost $9,900 and was 60% depreciated was sold in 2017. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land 4. Investments that cost $35,200 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Sheridan's 2017 income statement is as follows Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other revenues and expenses $953,800 602,600 351,200 250,600 100,600 Gain on sale of investments $15,100 (3,000 12,1 00 112,700 45,300 $67,400 Loss on sale of equipment Income before taxes Income taxes Net income (a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign Net cash flow from operating activities (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - SHERIDAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Increase in Income Taxes Payable Loss on Sale of Equipment Gain on Sale of Investments Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Sale of Investments Purchase of Investments Purchase of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Issuance of Common Stock Payment of Long-term Notes Payable Cash Dividends Paid Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2017 Cash, December 31, 2017 Noncash Investing and Financing Activities Issuance of Common Stock for Land