The comparative balance sheets for Sheridan Corporation show the following information.

		December 31
		2017		2016
Cash		$33,400		$12,900
Accounts receivable		12,200		9,900
Inventory		11,900		8,900
Available-for-sale debt investments		0		3,000
Buildings		0		30,100
Equipment		45,000		19,900
Patents		5,000		6,100
		$107,500		$90,800
Allowance for doubtful accounts		$3,000		$4,500
Accumulated depreciationequipment		2,000		4,500
Accumulated depreciationbuilding		0		5,900
Accounts payable		5,000		3,000
Dividends payable		0		5,000
Notes payable, short-term (nontrade)		3,000		4,000
Long-term notes payable		31,000		25,000
Common stock		43,000		33,000
Retained earnings		20,500		5,900
		$107,500		$90,800

Additional data related to 2017 are as follows.

1.		Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,400.
2.		$10,000 of the long-term note payable was paid by issuing common stock.
3.		Cash dividends paid were $5,000.
4.		On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (net of $2,000 taxes).
5.		Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past.
6.		Cash was paid for the acquisition of equipment.
7.		A long-term note for $16,000 was issued for the acquisition of equipment.
8.		Interest of $2,000 and income taxes of $6,400 were paid in cash.

Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 23-2 The comparative balance sheets for Sheridan Corporation show the following information. December 31 2017 2016 Cash Accounts receivable $33,400 12,200 11,900 -0- $12,900 9,900 8,900 Inventory Available-for-sale debt investments 3,000 Buildings Equipment Patents -0- 45,000 5,000 $107,500 30,100 19,900 6,100 $90,800 $3,000 2,000 -0- Allowance for doubtful accounts Accumulated depreciation equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock 5,000 -0- $4,500 4,500 5,900 3,000 5,000 4,000 25,000 33,000 5,900 $90,800 3,000 31,000 43,000 Retained earnings 20,500 $107,500 Additional data related to 2017 are as follows. 2. 1. Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,400. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (net of $2,000 taxes). 5. Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,400 were paid in cash. Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHERIDAN CORPORATION Statement of Cash Flows S Adjustments reconcile net income to Supplemental disclosures of cash flow information: NI