Exercise 23-11 Your answer is partially correct. Try again. Condensed financial data of Sheffield Company for 2017 and 2016 are presented below. SHEFFIELD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash $1,790 Receivables 1,780 Inventory 1,620 Plant assets 1,930 Accumulated depreciation (1,200 ) Long-term investments (held-to-maturity) 1,310 57,230 2016 1,150 1,330 1,890 1,700 (1,180) 1,420 $6,310 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,210 210 1,370 1,860 2,580 57,230 5920 240 1,530 1,670 1,950 56,310 56,970 4,680 2,290 940 1,350 SHEFFIELD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses 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 80 1,430 540 260 $630 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. 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).) SHEFFIELD COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities 890 TNet Income Adjustments to reconcile net income to I Cash Flows from Operating Activities Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable T Decrease in Accrued Liabilities T Depreciation Expense Salg T Gain on Sale of Investments IT Net Cash Used by Operating Activities TCash Flows from Investing Activities T Purchase of Plant Assets Sale of Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities T Redemption of Bonds Payable Issuance of Capital Stock Payment of Cash Dividends TNet Cash Used by Financing Activities TNet Increase in Cash TCash at Beginning of Period TCash at End of Period