Question 22 of 10 SHERIDANLTD. Statement of Financial Position December 31 2021 $55,000 Accounts receivable 90.000 Inventory 178,000 Estimated Inventory returns 6,000 Long term investments 79.000 Equipment 270,000 Accumulated depreciation (79.000) $599,000 2020 $25,000 78,500 185.000 3.000 100,000 174,000 (30,000) $535,500 Liabilities and Shareholders' Equity Accounts payable Retund liability Bank loan payable (noncurrent) Common shares Retained eaming Total liabilities and shareholders' equity $22.000 10.000 165.000 201.000 201.000 $599,000 $ 45,000 3,000 171.500 180,000 136,000 $535,500 Additional information pertaining to 2021. 1 2 3 4 5. Net income was 500.000 Sales were $972.000 Cost of goods sold was $756.000 Operating expenses were $49.000 exclusive of depreciation expense Depreciation expense was 349.000, Interest expense was $14.000 Income tax opense was $30,000. Long term investments were sold at a gain of $6,000 No equipment was sold during the year. $6.500 of the bank loan was repaid during the year Common shares were issued for $21.000, 7 9. 10. SERICANLTD. Statement of Cash Flows Indirect Method