Current Attempt in Progress Presented here are the financial statements of Sheridan Company. Sheridan Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,200 $19,800 Accounts receivable 33,000 18,700 Inventory 30,400 20,400 Property, plant, and equipment 59,300 78,000 Accumulated depreciation (29,300) (23,300) Total $130,600 $113,600 Liabilities and Stockholders' Equity Accounts payable $28,700 $16,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Sheridan Company Income Statement $28,700 $16,000 7,300 8,300 27,400 33,100 18,200 14,300 49,000 41,900 $130,600 $113,600 For the Year Ended December 31, 2022 Sales revenue $242,900 Cost of goods sold 175,600 Gross profit 67,300 Selling expenses $18,600 Sheridan Company Income Statement For the Year Ended December 31, 2022 Sales revenue $242,900 Cost of goods sold 175,600 Gross profit 67,300 Selling expenses $18,600 Administrative expenses 6,200 24,800 Income from operations 42,500 Interest expense 4,000 Income before income taxes 38,500 Income tax expense 7,700 Net income $30,800 Additional data: Additional data: 1. Depreciation expense was $16,100. 2. Dividends declared and paid were $23,700. 3. During the year equipment was sold for $8,600 cash. This equipment cost $18,700 originally and had accumulated depreciation of $10,100 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Prepare a statement of cash flows using the indirect method. (Show amounts 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 - Indirect Method For the Year Ended December 31, 2022 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 Increase in Inventory 16100 -6200 -7700 29300 Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Used by Operating Activities Cash Flows from Financing Activities Issuance of Bonds -7700 Sale of Equipment Net Cash Used by Operating Activities Cash Flows from Financing Activities Issuance of Bonds Redemption of Bonds Payment of Dividends Net Cash Provided by Financing Activities: Net Increase in Cash Cash at Beginning of Period Cash at End of Period