Question 2 of 2 - / 40 Current Attempt in Progress The statement of income and unclassified statement of financial position for Sheridan, Inc. follow: 2020 $47,000 116,000 SHERIDAN, INC. Statement of Financial Position December 31 Assets 2021 Cash $97,800 Trading investments 127,000 Accounts receivable 77,000 Inventory 121,400 Estimated inventory returns 2,400 Prepaid expenses 18.700 Equipment 292,000 Accumulated depreciation (46,000) Total assets $690,300 Liabilities and Shareholders' Equity Accounts payable $99,000 Property tax payable 9,900 Refund liability 1,100 Bank loan payable-current portion 40,000 Bank loan payable-noncurrent portion 87,300 Common shares 210,000 Retained earnings 243,000 Total liabilities and shareholders' equity $690,300 42,600 91,550 1,600 26,600 267,000 (52,300) $540,050 $72,500 6,700 800 134,750 27,300 185,000 113,000 $540,050 Question 2 of 2 - / 40 III INCIDING: Statement of Income Year Ended December 31, 2021 Sales $527,200 186,900 340,300 116,460 223,840 Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investments Interest expense Income before income tax Income tax expense Net income $11,000 (4,700) 6,300 230,140 47,000 $183,140 Additional information regarding 2021: 1. 2. 3. 4. 5. Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $90,000 was purchased for $24,400 cash and a $65,600 long-term bank loan payable. Old equipment having an original cost of $65,000 was sold for $1,000. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46,500 of depreciation expense and a $11,200 loss on disposal of equipment. Common shares were issued for $43,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. 6. 7. 8. Question 2 of 2