SheridanLtd. reported the following for the fiscal year 2021:

SHERIDANLTD.

Income Statement

Year Ended September 30, 2021Sales

$577,000

Cost of goods sold

332,000

Gross profit

245,000

Operating expenses

$103,000

Depreciation expense

28,000

Gain on sale of land

(38,000

)93,000Profit before income tax152,000

Income tax expense

38,000

Profit

$114,000

Additional information:

1.Accounts receivable decreased by $15,700during the year.

2.Inventory increased by $7,200during the year.

3.Prepaid expenses decreased by $5,200during the year.

4.Accounts payable to suppliers increased by $10,700during the year.

5.Accrued expenses payable increased by $4,700during the year.

6.Income tax payable decreased by $6,500during the year.

Prepare the operating activities section of the cash flow statement using the direct method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SHERIDANLTD.

Cash Flow Statement (Partial)Direct Method

September 30, 2021

Month Ended September 30, 2021

Year Ended September 30, 2021

Cash Payments

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Operating Activities

Net Cash Provided by Financing Activities

Financing Activities

Investing Activities

Cash Receipts

Net Decrease in Cash

Net Cash Used in Financing Activities

Cash at Beginning of Period

Net Cash Used in Operating Activities

Net Cash Used in Investing Activities

Cash at End of Period

Net Increase in Cash

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Decrease in Cash

Investing Activities

Financing Activities

Net Cash Used in Operating Activities

Cash at End of Period

Net Cash Used in Investing Activities

Net Increase in Cash

Net Cash Provided by Financing Activities

Cash at Beginning of Period

Cash Receipts

Cash Payments

Operating Activities

Net Cash Used in Financing Activities

Increase in Accounts Payable

For Operating Expenses

Loss on Sale of Land

Increase in Inventory

For Interest

Decrease in Inventory

Decrease in Accounts Receivable

Increase in Accounts Receivable

For Income Taxes

Issuance of Bonds Payable

Decrease in Accounts Payable

To Suppliers

From Customers

$

Net Increase in Cash

Cash Payments

Net Decrease in Cash

Net Cash Used in Financing Activities

Operating Activities

Net Cash Used in Investing Activities

Cash, January 1

Cash Receipts

Net Cash Provided by Operating Activities

Financing Activities

Investing Activities

Net Cash Used in Operating Activities

Cash, December 31

Net Cash Provided by Investing Activities

Net Cash Provided by Financing Activities

Decrease in Accounts Receivable

Increase in Accounts Payable

For Income Taxes

Increase in Inventory

Issuance of Bonds Payable

Decrease in Accounts Payable

From Customers

For Interest

Increase in Accounts Receivable

Loss on Sale of Land

To Suppliers

Decrease in Inventory

For Operating Expenses

$

To Suppliers

Increase in Accounts Receivable

For Operating Expenses

Decrease in Inventory

For Income Taxes

Decrease in Accounts Receivable

Issuance of Bonds Payable

Loss on Sale of Land

For Interest

Decrease in Accounts Payable

Increase in Inventory

From Customers

Increase in Accounts Payable

Loss on Sale of Land

Decrease in Accounts Payable

From Customers

To Suppliers

Issuance of Bonds Payable

For Operating Expenses

Increase in Inventory

Decrease in Inventory

For Interest

Increase in Accounts Receivable

Increase in Accounts Payable

For Income Taxes

Decrease in Accounts Receivable