SOURCES Question 3 Condensed financial data follow for Sheridan Ltd. E- Perform reports under ASPE. by Study SHERIDAN LTD. Balance Sheet December 31 Assets 2017 2016 Cash $91,280 $46,800 Accounts receivable 75,400 42,800 Inventory 128,800 95,650 Prepaid expenses 38,300 27,000 Long-term investments 126,300 112,300 Property, plant, and equipment 266,400 245,300 Accumulated depreciation (52,000) (51,600) Total assets $674,480 $518,250 Liabilities and Shareholders' Equity Accounts payable $94,100 $78,000 Accrued expenses payable 10,500 7,200 Notes payable 109,700 158,400 Common shares 238,300 183,700 Retained earnings 221,880 90,950 Total liabilities and shareholders' equity $674,480 $518,250 SHERIDAN LTD. Income Statement Year Ended December 31, 2017 Sales $490,700 Cost of goods sold 189,100 Gross profit 301,600 Operating expenses $57,600 Depreciation expense 45,700 Loss on sale of equipment 7,290 110,590 Profit from operations 191,010 Other expenses Interest expense 5,350 Profit before income tax 185,660 Income tax expense 42,100 Profit $143,560 Additional information: 1. New equipment costing $81,100 was purchased for $24,100 cash and a $57,000 note payable. 2. Equipment with an original cost of $60,000 was sold at a loss of $7,290. 3. Notes payable matured during the year and were repaid. 4. A long-term investment was acquired for cash. 5. Accounts payable relate only to merchandise creditors. 6. Accrued expenses payable and prepaid expenses relate to operating expenses. Prepare the operating section of the cash flow statement using the direct method. (Show amounts that decreased SHERIDAN LTD. Cash Flow Statement (Partial) - Direct Method Year Ended December 31, 2017 $ > LINK TO TEXT LINK TO TEXT ad a