Condensed financial data of Sheffield Company for 2020 and 2019 are presented below. SHEFFIELD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,760 $1,130 Receivables Inventory 1,740 1,270 1,640 1,880 Plant assets 1,890 1,700 Accumulated depreciation (1,280) (1,150) Long-term investments (held-to-maturity) 1,280 1,400 $7,030 $6,230 Accounts payable $1,200 $920 Accrued liabilities 190 260 Bonds payable 1,380 1,520 Common stock 1,870 1,660 Retained earnings 2,390 1,870 SHEFFIELD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,970 Cost of goods sold 4,780 Gross margin 2,190 Selling and administrative expenses 930 Income from operations 1,260 Other revenues and gains Gain on sale of investments 70 Income before tax 1,330 Income tax expense 550 Net income 780 Cash dividends 260 Income retained in business $520 $7,030 $6,230 Income retained in business $520 Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash f with either a-sign e.g. -15,000 or in parenthesis eg. (15,000).) SHEFFIELD COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Cash Receipts from Customers Cash Paid for Merchandise Cash Paid for Selling/Administrative Expenses Cash Paid for Income Taxes 4260 i 870 i 550 i 6500 5680 i Cash Paid for Income Taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments Purchase of Plant Assets Net Cash Provided by Investing Activities Cash Flows from Financing Activities: Redemption of Bonds Payable Payment of Cash Dividends Issuance of Common Stock for Plant Assets Net Cash Used by Financing Activities 550 i MacBook Air (110) 190 130 (140) (260) 0.82/1 5680 i (270) 820 80 Payment of Cash Dividends (140) Issuance of Common Stock for Plant Assets (260) Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets eTextbook and Media (270) 630 1130 1760 80