SHERIDAN COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,900 $20,200 Accounts receivable 32,100 19,600 Inventory 31,000 20,400 Property, plant, and equipment 59,500 77,800 Accumulated depreciation (29,900) (23,800) Total $130,600 $114,200 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total SHERIDAN COMPANY Income Statement $28,400 $16,800 7,300 8,400 27,400 32,500 18,200 14,900 49,300 41,600 $130,600 $114,200 For the Year Ended December 31, 2022 Sales revenue $242,900 Cost of goods sold 175,700 Gross profit 67,200 Selling expenses $17,775 Administrative expenses 5,925 23,700 Income from operations 43,500 Interest expense 2,900 Income before income taxes 40,600 Income tax expense 8,120 Net income $32,480 Additional data: 1. Depreciation expense was $15,800. 2. Dividends declared and paid were $24,780. 3. During the year, equipment was sold for $8,600 cash. This equipment originally cost $18,300 and had accumulated depreciation of $9,700 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. SHERIDAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Cash Flows from Financing Activities Payment of Dividends Redemption of Bonds Issuance of Common Stock Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period 15800 -12500 11600 8600 -24780 -5100 3300 $ 32480 $ -26580 17700 20200