Problem 17-8A Sheridan Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2017 and 2016. SHERIDAN LTD. Balance Sheet May 31 Assets 2017 2016 Cash $29,675 $46,250 Accounts receivable 87,950 78,250 Inventory 182,000 159,250 Prepaid expenses 5,700 7,200 Land 133,250 78,500 Equipment 317,000 197,000 Accumulated depreciation (75,200) (39,250) Total assets $680,375 $527,200 Liabilities and Shareholders' Equity Accounts payable $42,550 $39,250 Dividends payable 7,200 5,700 Income taxes payable 2,900 6,700 Mortgage payable 129,000 79,250 Common shares 217,500 165,250 Retained earnings 281,225 231,050 Total liabilities and shareholders' equity $680,375 $527,200 Additional Information: 1. Profit for 2017 was $112,425. 2. Common shares were issued for $52,250. 3. Land with a cost of $52,250 was sold at a loss of $19,700. 4. Purchased land with a cost of $107,000 with a $57,250 down payment and financed the remainder with a mortgage note payable. 5. No equipment was sold during 2017. 6. Net sales for the year were $674,400. 7. Cost of goods sold for the year was $400,600. 8. Operating expenses, including depreciation expense, were $98,500. 9. Interest expense was $5,700. 10. Income tax expense was $37,475. 11. Accounts payable is used for merchandise purchases. Prepare a cash flow statement for the year 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 LTD. Cash Flow Statement - Direct Method Note X: Land with a cost of $ was purchased by paying $ cash and issuing a mortgage note payable for $