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 $1,800 $1,130 Receivables Inventory Plant assets 1,750 1,320 1,630 1,890 1,910 1,720 Accumulated depreciation (1,190 ) (1,170) Long-term investments (held-to-maturity) 1,280 1,410 $7,180 $6,300 Accounts payable $1,230 $910 Accrued liabilities 190 240 Bonds payable 1,400 1,540 Common stock 1,930 1,680 Retained earnings 2,430 1,930 $7,180 $6,300 SHEFFIELD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890 Cost of goods sold 4,730 Gross margin 2,160 Selling and administrative expenses 940 Income from operations 1,220 Other revenues and gains Gain on sale of investments 90 Income before tax 1,310 Income tax expense 550 Net income 760 Cash dividends 260 Income retained in business $500 Additional information: During the year, $60 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 indirect method. (Show amounts that decrease cash flow with either a sign eg.-15,000 or in parenthesis e.g. (15,000).) SHEFFIELD COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Increase in Cash Gain on Sale of Investments Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Decrease in Accrued Liabilities 40 -80 760 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 Issuance of Capital Stock Redemption of Bonds Payable Payment of Cash Dividends Net Cash Used by Financing Activities Net Increase in Cash Question 3 of 6 < > Issuance of Capital Stock 1.6/3 Redemption of Bonds Payable Payment of Cash Dividends 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