Sheridan Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. SHERIDAN COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3,800 Expenses Cost of goods sold Salaries and benefits Heat, light, and power Depreciation Property taxes Patent amortization $1,190 740 80 80 20 30 Miscellaneous expenses Interest Income before income taxes Income taxes Net income Retained earnings-Jan. 1, 2020 Stock dividend declared and issued Retained earnings-Dec. 31, 2020 10 30 2,180 1,620 810 810 330 1,140 610 $530 SHERIDAN COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets Current assets Cash U.S. Treasury notes (available-for-sale) Accounts receivable Inventory Total current assets Long-term assets Land Buildings and equipment Accumulated depreciation-buildings and equipment 2020 $393 10 770 720 1,893 150 900 (190) 2019 $170 50 500 560 1,280 60 600 (110) Accumulated depreciation-buildings and equipment Patents (less amortization) Total long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Notes payable Total current liabilities Long-term notes payable-due 2022 Total liabilities Stockholders' equity (190) 90 950 $2,843 $424 39 340 803 190 993 (110) 120 670 $1,950 $350 30 340 720 190 910 Stockholders' equity Common stock 1,320 710 Retained earnings 530 330 Total stockholders' equity 1,850 1,040 Total liabilities and stockholders' equity $2,843 $1,950 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) SHERIDAN COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 ($000 Omitted) $ $ ^ Cash Receipts from Customers Sale of Investments Cash Payment for Income Taxes Purchase of Buildings and Equipment Cash Payment for Property Taxes Cash Payment for Miscellaneous Cash Payment for Heat, Light, and Power Purchase of Land Cash Payment for Salaries and Benefits Cash Payment for Interest Cash Payment for Merchandise Cash, January 1, 2020 Cash, December 31, 2020 Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash
