Presented here are the financial statements of Sheridan Company. SHERIDAN COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,900 $20,300 Accounts receivable 32,200 18,800 Inventory 30,600 20,500 Property, plant, and equipment 59,400 77,100 Accumulated depreciation (29,300) (23,200) Total $130,800 $113,500 Liabilities and Stockholders' Equity Accounts payable $28,300 $ 16,600 Income taxes payable 7,200 8,500 Bonds payable 27,500 33,900 Common stock 18,500 14,700 Retained earnings 49,300 39,800 Total $130,800 $113,500 SHERIDAN COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241,200 Cost of goods sold 175,900 Gross profit 65,300 Selling expenses $17,250 Administrative expenses 5,750 23,000 Income from operations 42,300 Interest expense 4,000 Income before income taxes 38,300 Income tax expense 7,660 Net income $30,640 Additional data: 1. Depreciation expense was $16,200. 2. Dividends declared and paid were $21,140. 3. During the year, equipment was sold for $7,600 cash. This equipment originally cost $17,700 and had accumulated depreciation of $10,100 at the time of sale. Bonds were redeemed at their carrying value. 4. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. Prepare a statement of cash flows for Sheridan Company using the direct 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 For the Year Ended December 31.2022 Cash Flows from Operating Activities cash payments: Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow $