Selected information from Sheridan Ltd's statement of financial position and statement of income is as follows: SHERIDAN LTD. Statement of Financial Position (partial) December 31 2021 2020 Current assets $7,700 $11,400 Accounts receivable Inventory 6,000 4,900 3,200 2,400 Prepaid expenses Current liabilities 4,400 2,800 1,900 550 Accounts payable Income tax payable Property tax payable Bank loan payable-current portion 2,400 1,200 5,800 8,400 SHERIDAN LTD. Statement of Income Year Ended December 31, 2021 Sales $215,000 Cost of goods sold 112,000 Gross profit 103,000 Operating expenses 57,000 Income from operations 46,000 Interest expense 1,600 44,400 Income before income tax Income tax expense Net income 3,400 $41,000 Additional information: 1. The bank loan was received in the past to finance the purchase of equipment. Operating expenses included depreciation expense of $11,800 and a loss of $5,900 on the disposal of equipment. 2. Prepare the operating activities section of the statement of cash flows, using the direct method. PUFFY LTD. Statement of Cash Flows TA Cash payments