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Condensed financial data of Sheridan Company for 2020 and 2019 are presented below. SHERIDAN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Sheridan Company for 2020 and 2019 are presented below. SHERIDAN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 Cash Receivables Inventory Plant assets 2020 2019 $1,810 $1,120 1,790 1,330 1,570 1,940 1,870 1,740 Accumulated depreciation (1,230) (1,150) Long-term investments (held-to-maturity) 1,300 1,440 $7,110 $6,420 Accounts payable Accrued liabilities $1,220 $910 200 260 Accounts payable $1,220 $910 Accrued liabilities 200 260 Bonds payable 1,370 1,550 Common stock 1,860 1,740 Retained earnings 2,460 1,960 $7,110 $6,420 SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,810 Cost of goods sold 4,680 Gross margin 2,130 Selling and administrative expenses 920 Income from operations 1,210 Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 1.210 1,290 $500 Additional information: During the year, $70 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 flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHERIDAN COMPANY Statement of Cash Flows Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHERIDAN COMPANY Statement of Cash Flows (Direct Method) $ $
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