Problem 23-1 The following are Sheridan Corp.s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017. COMPARATIVE BALANCE SHEETS 2017 2016 Increase (Decrease) Cash $806,900 $700,900 $106,000 Accounts receivable 1,131,700 1,159,400 (27,700 ) Inventory 1,842,900 1,730,100 112,800 Property, plant, and equipment 3,300,200 2,968,200 332,000 Accumulated depreciation (1,173,600 ) (1,037,600 ) (136,000 ) Investment in Myers Co. 307,300 277,000 30,300 Loan receivable 247,500 247,500 Total assets $6,462,900 $5,798,000 $664,900 Accounts payable $1,020,900 $950,800 $70,100 Income taxes payable 30,000 50,200 (20,200 ) Dividends payable 80,500 100,500 (20,000 ) Lease liabililty 392,000 392,000 Common stock, $1 par 500,000 500,000 Paid-in capital in excess of parcommon stock 1,489,000 1,489,000 Retained earnings 2,950,500 2,707,500 243,000 Total liabilities and stockholders equity $6,462,900 $5,798,000 $664,900 Additional information: 1. On December 31, 2016, Sheridan acquired 25% of Myers Co.s common stock for $277,000. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,108,000. Myers reported income of $121,200 for the year ended December 31, 2017. No dividend was paid on Myerss common stock during the year. 2. During 2017, Sheridan loaned $291,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $44,100, plus interest at 10%, on December 31, 2017. 3. On January 2, 2017, Sheridan sold equipment costing $60,000, with a carrying amount of $38,100, for $40,400 cash. 4. On December 31, 2017, Sheridan entered into a capital lease for an office building. The present value of the annual rental payments is $392,000, which equals the fair value of the building. Sheridan made the first rental payment of $59,900 when due on January 2, 2018. 5. Net income for 2017 was $323,500. 6. Sheridan declared and paid the following cash dividends for 2017 and 2016. 2017 2016 Declared December 15, 2017 December 15, 2016 Paid February 28, 2018 February 28, 2017 Amount $80,500 $100,500 Prepare a statement of cash flows for Sheridan Corp. for the year ended December 31, 2017, 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).) SHERIDAN CORP. Statement of Cash Flows $ Adjustments to reconcile net income to $ $ $