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Sheridan Company issued the following statement of cash flows for 2017. Sheridan Company Statement of Cash FlowsIndirect Method For the Year Ended December 31, 2017
Sheridan Company issued the following statement of cash flows for 2017.
Sheridan Company Statement of Cash FlowsIndirect Method For the Year Ended December 31, 2017 | ||||
Cash flows from operating activities | ||||
Net income | $199,066 | |||
Adjustments to reconcile net income to net cash | ||||
provided by operating activities: | ||||
Depreciation expense | $30,703 | |||
Decrease in accounts receivable | 32,053 | |||
Increase in inventory | (16,870 | ) | ||
Decrease in accounts payable | (7,423 | ) | ||
Loss on disposal of plant assets | 11,134 | 49,597 | ||
Net cash provided by operating activities | 248,663 | |||
Cash flows from investing activities | ||||
Sale of investments | 10,459 | |||
Purchase of equipment | (81,651 | ) | ||
Net cash used by investing activities | (71,192 | ) | ||
Cash flows from financing activities | ||||
Issuance of stock | 67,480 | |||
Payment on long-term note payable | (33,740 | ) | ||
Payment for dividends | (43,862 | ) | ||
Net cash used by financing activities | (10,122 | ) | ||
Net increase in cash | 167,349 | |||
Cash at beginning of year | 43,862 | |||
Cash at end of year | $211,211 |
(a)Compute free cash flow for Sheridan Company.
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