Sheridan Company Comparative Balance Sheets December 31 2017 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total $ 77,700 44,400 62,160 133,200 (71,040 ) 2016 $ 44,400 31,080 44,400 173,160 (53,280) $239,760 $246,420 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 42,180 15,540 37,740 39,960 111,000 $ 33,300 17,760 73,260 31,080 84,360 $246,420 $239,760 Sheridan Company Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold $537,240 388,500 Gross profit 148,740 Selling expenses Administrative expenses Income from operations $39,960 13,320 Interest expense 53,280 95,460 6,660 88,800 17,760 Income before income taxes Income tax expense Net income $ 71,040 Additional data: 1. Depreciation expense was $38,850. 2. Dividends declared and paid were $44,400. 3. During the year equipment was sold for $18,870 cash. This equipment cost $39,960 originally and had accumulated depreciation of $21,090 at the time of sale. Sheridan Company Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 521040 TNet Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 738850 Depreciation Expense Tincrease in Accounts Receivable] |(13320) Increase in Inventory 717760) Tincrease in Accounts Payable) 8880 Decrease in Income Taxes Payable 2220) 414430 Net Cash Provided by Operating Activities 85470 TCash Flows from Investing Activities 578870 "Sale of Equipment TCash Flows from Financing Activities TRedemption of Bonds 7135520) 513880 Tissuance of Common Stock) Payment of Dividends) 144400) Net Cash used by Financing Activities 7(71040) Net Increase in Cash 33300 TCash at Beginning of Period 44400 Cash at End of Period