Sheridan Company Comparative Balance Sheets December 31 Assets 2022 Cash $118.000 Accounts receivable 91,600 Inventory 113,000 Prepaid expenses 29,400 Long-term investments 141,000 Plant assets 275,700 Accumulated depreciation (46,000) Total $722,700 2021 $47,800 32,200 102,900 26,000 113,500 241,600 (51,400) $512,600 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 111,300 16,100 110,700 219.500 265,100 $722,700 $67.900 17,000 149,500 174,200 104,000 $512,600 $391,900 Sheridan Company Income Statement For the Year Ended December 31, 2022 Sales revenue Less: Cost of goods sold $135,900 Operating expenses, excluding depreciation 11,600 Depreciation expense 29,500 Income tax expense 26,300 Interest expense 4,400 Loss on disposal of plant assets 7,500 Net income 215,200 $176,700 Additional information: 1. 2. 3. 4. 5. 6. New plant assets costing $79,400 were purchased for cash during the year. Old plant assets having an original cost of $45,300 and accumulated depreciation of $34,900 were sold for $2,900 cash. Bonds payable matured and were paid off at face value for cash. A cash dividend of $15,600 was declared and paid during the year. Common stock was issued at par for cash There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis eg. (15,000).) Sheridan Company Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2022 Cash Flows from Operatine Activities 176,700 Net Income Adjustments to reconcile net income to Net Cash Provided by Operatine Activities Depreciation Expense 29.500 Loss on Disposal of Plant Assets 1 Increase in Accounts Receivable Increase in Prepaid Expenses Increase in Inventory Increase in Accounts Pavable Decrease in Accrued Expenses Pavable Net Cash Used by Operatine Activities Cash Flows from Investine Activities Purchase of Plant Assets Sale of Plant Assets Purchase of Investments Net Cash Used by Investine Activities Cash Flows from Financine Activities