SHERIDANLTD. Balance Sheet December 31 Accounts payable Income tax payable Notes payable \begin{tabular}{rr} $27,840 & $17,400 \\ 8,120 & 9,280 \\ 31,320 & 38,280 \\ 20,880 & 16,240 \\ 58,000 & 44,080 \\ \hline \end{tabular} Liabilities and Shareholders' Equity. \begin{tabular}{lrr} Accounts payable & $27,840 & $17,400 \\ Income tax payable & 8,120 & 9,280 \\ Notes payable & 31,320 & 38,280 \\ Common shares & 20,880 & 16,240 \\ Retained earnings & 58,000 & 44,080 \\ \hline Total liabilities and shareholders' equity & $146,160 & $125,280 \end{tabular} SHERIDAN LTD. Income Statement For the Year Ended December 31, 2024 Sales $280,720 \( \begin{array}{lr}\text { Cost of goods sold } & 203,000 \\ { } } & 77,720\end{array} \) \begin{tabular}{lr} Operating expenses & 27,840 \\ \cline { 2 - 2 } Profit from operations & 49,880 \end{tabular} Interestexpense 3480 Additional Information: 1. Dividends declared and paid were $23,200. Sheridan reports under IFRS and o activities. During the year, equipment was sold for $9,860 cash. This equipment cost $20 Additional Information: 1. Dividends declared and paid were $23,200. Sheridan reports under IFRS and does not report dividends as operating activities. 2. During the year, equipment was sold for $9,860cash. This equipment cost $20,880 originally and had a carrying value of $9,860 at the time of sale. 3. All depreciation expense, $16,820, is included in the operating expenses. 4. All sales and purchases are on account. 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 es. (15,000)) SHERIDAN LTD. Cash Flow Statement - Indirect Method Adjustments to reconcile profit to $ Calculate free cash flow. (Show amounts that decrease cash flow with either a- signeg - 15,000 or in parenthesis eg (15,000) ).) Free cash flow $