Do Itl Review 12-2b Sheridan Company reported the following information for 2017 Sheridan Company Comparative Balance Sheets December 31 Change Increase/Decrease $29,320 Increase 39,850 Increase 43,950 Increase 1,960 Increase 14,640 Decrease Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation Equipment Accumulated depreciation 2017 $65,590 61,670 43,950 5,970 54,690 200,510 2016 $36,270 21,820 4,010 69,330 200,510 6,940 Increase 114,230 Increase -buildings (20,820) (13,880) 67,630 (9,990)18,550 Increas 181,860 equipment (28,540) 9,990) Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings $564,880 $375,700 $39,600 10,050 150,400 60,590 115,060 $564,880 $375,700 $43,430 $3,830 Increase 10,050 Decrease 49,940 Decrease 171,590 Increase 73,750 Increase 100,460 232,180 188,810 Totals Sheridan Company Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $943,670 $473,040 232,710 11,940 1,980 719,670 224,000 65,260 $158,740 Additional information: 1. Operating expenses include depreciation expense of $39,830. 2. Land was sold at its book value for cash. Cash dividends of $84,990 were declared and paid in 2017 4. Equipment with a cost of $164,870 was purchased for cash. Equipment with a cost of $50,640 and a book value of $36,300 was sold for $34,320 cash. 5. Bonds of $49,940 were redeemed at their face value for cash. 6. Common stock ($1 par) of $171,590 was issued for cash Use this information to 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).)