The comparative, unclassified statement of financial position for Sheridan Ltd. shows the following balances at December 31: Sheridan Ltd. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 12,000 $ 33,000 Term deposits (maturing in 60 days) 0 43,000 Accounts receivable 77,000 42,000 Inventory 104,000 71,000 Land 189,000 234,000 Buildings 921,000 528,000 Accumulated depreciation-buildings (140,000) (192,000) 99,000 69,000 Equipment Accumulated depreciation-equipment Total assets (46,000) (21,000) $1,216,000 $807,000 $ 29,000 $75,000 4,000 6,000 Liabilities and Shareholders' Equity Accounts payable Income tax payable Interest payable Bank loan payable-current portion Bank loan payable-non-current portion Common shares 21,000 13,000 52,000 40,000 902,000 423,000 162,000 182,000 Retained earnings 46,000 68,000 Total liabilities and shareholders' equity $1,216,000 $807,000 Additional information regarding 2018: 1. 2. 3. 4. Net income was $11,000. A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. Again on the disposal of $18,000 was recorded when old building was sold for was sold for $45,000 cash. A new building was purchased for $515.000 and depreciation expense on buildings for the year was $43.000. Equipment costing $73,000 was purchased while a loss of $13,000 was recorded on equipment that originally cost $43,000 and was sold for $21,000. The company received $516,000 from new bank loans during the year. Dividends were declared and paid during the year. No common shares were issued during the year but some were bought back and retired at the amount they were originally issued at 5. 6. 7. SHERIDAN LTD. Statement of Cash Flows-Indirect Method December 31, 2018 Cash flows from operating activeles Net Income 11000 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 74000 Loss on disposal of building 15000 Loss on disposal of equipment 11000 Loss on disposal of land 25000 Increase in accounts receivable ColdNIINI 38000 Increase in inventory 34000 Decrease in accounts payable 46000 Decrease in Income tax payable 3000 Increase in interest payable 5000 1000 Cash flows from operating activities 10000 Proceeds from disposal of land $ 24000 Proceeds from disposal of building DOO 40000 Proceeds from disposal of equipment 25000 Purchase of building 510000 Purchase of equipment 75000 Cash flows from Investing activitles 496000 Cash flows from financing activities Additions to bank loan $ 515000 Dividends pald 32000 0902 Repurchase of common shares 20000 Repayments of bank loan 25000 Net cash provided by financing activities 438000 Net Increase in cash 68000 Cash and cash equivalents, January 1 finn 89000 Cash and cash equlvalents, December 31 21000