Exercise 23-12 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 2020 2019 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) $1,830 1,710 1,590 1,890 (1,220 ) 1,320 $7,120 $1,180 1,320 1,920 1,710 (1,190 ) 1,440 $6,380 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,190 210 1,400 1,940 2,380 $7,120 $890 260 1,580 1,660 1,990 $6,380 SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue Cost of goods sold $6,720 4,680 SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 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 $6,720 4,680 2,040 920 1,120 80 1,200 550 650 260 Income retained in business $390 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 (Direct Method) SHERIDAN COMPANY Statement of Cash Flows (Direct Method)