The financial statements ofSheridanLtd., a private company reporting under ASPE, follow:

SHERIDANLTD.

Balance Sheet

December 31

Assets20212020 Cash$6,498$9,700 Short-term notes receivable12,00021,300 Accounts receivable27,20013,200 Inventory28,70024,200 Property, plant, and equipment70,60076,200 Accumulated depreciation(29,200)(23,700)Total assets$115,798$120,900Liabilities and Shareholders' EquityAccounts payable$24,200$42,100 Income tax payable2,60018,600 Notes payable11,7009,100 Common shares23,10023,100 Retained earnings54,19828,000Total liabilities and shareholders' equity$115,798$120,900

SHERIDANLTD.

Income Statement

Year Ended December 31, 2021

Sales$281,200 Cost of goods sold191,600 Gross profit89,600 Operating expenses$35,800Loss on sale of equipment1,80037,600 Profit from operations52,000 Other revenues and expensesInterest revenue$(940)Interest expense1,800860 Profit before income tax51,140 Income tax expense15,342 Profit$35,798

Additional information:1.Short-term notes receivable are loans to other companies. During the year, the company collected the outstanding balance at December 31, 2020, and made new loans in the amount of $12,000.2.Equipment was sold during the year. This equipment cost $14,700originally and had a carrying amount of $7,900at the time of sale.

3.Equipment costing $9,100was purchased in exchange for a $9,100note payable.

4.Depreciation expense is included in operating expenses.

5.Accounts receivable are from the sale of merchandise on credit.6.Accounts payable relate to the purchase of merchandise on credit.

cash flow statement for the year using the indirect 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 StatementIndirect Method

Month Ended December 31, 2021

December 31, 2021

Year Ended December 31, 2021

Net Cash Provided by Financing Activities

Net Cash Used by Financing Activities

Investing Activities

Operating Activities

Net Decrease in Cash

Cash, December 31

Net Cash Used by Investing Activities

Financing Activities

Net Cash Provided by Investing Activities

Net Increase in Cash

Net Cash Used by Operating Activities

Cash, January 1

Net Cash Provided by Operating Activities

Acquisition of Long-term Debt Investment

Increase in Accounts Receivable

Sale of Equipment

Collections from Customers

Decrease in Income Tax Payable

Payments for Operating Expenses

Payment of Cash Dividends

Increase in Inventory

Issue of Notes Receivable

Increase in Accounts Payable

Decrease in Accounts Payable

Payments for Taxes

Profit

Payments to Suppliers

Depreciation Expense

Loss on Sale of Equipment

Repayment of Note Payable

Amortization of Premium on Long-term Debt Investment

Collection of Notes Receivable

$Adjustments to reconcile profit to

Net Cash Used by Operating Activities

Net Cash Used by Investing Activities

Financing Activities

Net Cash Provided by Financing Activities

Net Cash Used by Financing Activities

Cash, December 31

Net Increase in Cash

Cash, January 1

Operating Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Decrease in Cash

Investing Activities

Payment of Cash Dividends

Decrease in Income Tax Payable

Amortization of Premium on Long-term Debt Investment

Sale of Equipment

Collection of Notes Receivable

Increase in Accounts Receivable

Profit

Loss on Sale of Equipment

Repayment of Note Payable

Increase in Accounts Payable

Decrease in Accounts Payable

Payments for Taxes

Payments for Operating Expenses

Payments to Suppliers

Increase in Inventory

Issue of Notes Receivable

Collections from Customers

Acquisition of Long-term Debt Investment

Depreciation Expense

$

Payments for Taxes

Increase in Accounts Payable

Payments for Operating Expenses

Depreciation Expense

Collection of Notes Receivable

Decrease in Income Tax Payable

Loss on Sale of Equipment

Profit

Increase in Accounts Receivable

Decrease in Accounts Payable

Acquisition of Long-term Debt Investment

Payment of Cash Dividends

Collections from Customers

Increase in Inventory

Amortization of Premium on Long-term Debt Investment

Repayment of Note Payable

Payments to Suppliers

Issue of Notes Receivable

Sale of Equipment

Repayment of Note Payable

Collection of Notes Receivable

Decrease in Income Tax Payable

Amortization of Premium on Long-term Debt Investment

Loss on Sale of Equipment

Depreciation Expense

Payments for Taxes

Increase in Accounts Receivable

Collections from Customers

Payments to Suppliers

Profit

Increase in Accounts Payable

Payments for Operating Expenses

Sale of Equipment

Issue of Notes Receivable

Increase in Inventory

Decrease in Accounts Payable

Acquisition of Long-term Debt Investment

Payment of Cash Dividends

Profit

Payments to Suppliers

Collections from Customers

Collection of Notes Receivable

Decrease in Income Tax Payable

Loss on Sale of Equipment

Increase in Inventory

Decrease in Accounts Payable

Depreciation Expense

Payment of Cash Dividends

Payments for Operating Expenses

Sale of Equipment

Payments for Taxes

Amortization of Premium on Long-term Debt Investment

Repayment of Note Payable

Issue of Notes Receivable

Increase in Accounts Receivable

Increase in Accounts Payable

Acquisition of Long-term Debt Investment

Repayment of Note Payable

Payment of Cash Dividends

Payments to Suppliers

Payments for Taxes

Sale of Equipment

Collections from Customers

Decrease in Income Tax Payable

Loss on Sale of Equipment

Payments for Operating Expenses

Amortization of Premium on Long-term Debt Investment

Depreciation Expense

Profit

Increase in Accounts Payable

Decrease in Accounts Payable

Increase in Inventory

Increase in Accounts Receivable

Issue of Notes Receivable

Collection of Notes Receivable

Acquisition of Long-term Debt Investment

Increase in Accounts Payable

Amortization of Premium on Long-term Debt Investment

Repayment of Note Payable

Decrease in Income Tax Payable

Depreciation Expense

Decrease in Accounts Payable

Payments to Suppliers

Issue of Notes Receivable

Acquisition of Long-term Debt Investment

Increase in Inventory

Payments for Operating Expenses

Payments for Taxes

Increase in Accounts Receivable

Collection of Notes Receivable

Profit

Payment of Cash Dividends

Collections from Customers

Sale of Equipment

Loss on Sale of Equipment

Net Decrease in Cash

Net Cash Used by Financing Activities

Cash, January 1

Net Increase in Cash

Net Cash Provided by Operating Activities

Operating Activities

Investing Activities

Net Cash Used by Investing Activities

Cash, December 31

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Financing Activities

Net Cash Used by Operating Activities

Net Cash Provided by Investing Activities

Net Increase in Cash

Net Cash Provided by Operating Activities

Investing Activities

Net Cash Used by Operating Activities

Cash, December 31

Cash, January 1

Net Cash Provided by Financing Activities

Net Cash Used by Financing Activities

Financing Activities

Net Decrease in Cash

Net Cash Used by Investing Activities

Operating Activities

Payment of Cash Dividends

Increase in Accounts Receivable

Depreciation Expense

Collections from Customers

Profit

Decrease in Income Tax Payable

Payments to Suppliers

Loss on Sale of Equipment

Collection of Notes Receivable

Amortization of Premium on Long-term Debt Investment

Increase in Inventory

Acquisition of Long-term Debt Investment

Decrease in Accounts Payable

Issue of Notes Receivable

Sale of Equipment

Increase in Accounts Payable

Payments for Operating Expenses

Payments for Taxes

Repayment of Note Payable

$

Acquisition of Long-term Debt Investment

Depreciation Expense

Collection of Notes Receivable

Payments for Operating Expenses

Sale of Equipment

Payments to Suppliers

Increase in Accounts Receivable

Profit

Amortization of Premium on Long-term Debt Investment

Payments for Taxes

Decrease in Income Tax Payable

Loss on Sale of Equipment

Repayment of Note Payable

Payment of Cash Dividends

Decrease in Accounts Payable

Issue of Notes Receivable

Collections from Customers

Increase in Accounts Payable

Increase in Inventory

Increase in Accounts Payable

Collection of Notes Receivable

Decrease in Accounts Payable

Loss on Sale of Equipment

Payments for Taxes

Issue of Notes Receivable

Depreciation Expense

Payment of Cash Dividends

Acquisition of Long-term Debt Investment

Amortization of Premium on Long-term Debt Investment

Increase in Accounts Receivable

Decrease in Income Tax Payable

Profit

Payments for Operating Expenses

Sale of Equipment

Increase in Inventory

Collections from Customers

Payments to Suppliers

Repayment of Note Payable

Cash, December 31

Net Cash Provided by Investing Activities

Investing Activities

Net Cash Used by Operating Activities

Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Operating Activities

Financing Activities

Cash, January 1

Net Cash Used by Investing Activities

Net Increase in Cash

Net Decrease in Cash

Net Cash Used by Financing Activities

Net Cash Used by Operating Activities

Net Cash Used by Investing Activities

Net Cash Provided by Financing Activities

Cash, December 31

Net Decrease in Cash

Operating Activities

Financing Activities

Investing Activities

Net Cash Provided by Operating Activities

Cash, January 1

Net Increase in Cash

Net Cash Used by Financing Activities

Net Cash Provided by Investing Activities

Repayment of Note Payable

Depreciation Expense

Amortization of Premium on Long-term Debt Investment

Issue of Notes Receivable

Decrease in Income Tax Payable

Payment of Cash Dividends

Increase in Inventory

Payments for Operating Expenses

Collection of Notes Receivable

Sale of Equipment

Increase in Accounts Receivable

Profit

Loss on Sale of Equipment

Collections from Customers

Payments for Taxes

Acquisition of Long-term Debt Investment

Decrease in Accounts Payable

Increase in Accounts Payable

Payments to Suppliers

$

Collections from Customers

Payments for Taxes

Increase in Accounts Payable

Increase in Accounts Receivable

Payments for Operating Expenses

Decrease in Accounts Payable

Decrease in Income Tax Payable

Payment of Cash Dividends

Acquisition of Long-term Debt Investment

Payments to Suppliers

Amortization of Premium on Long-term Debt Investment

Depreciation Expense

Profit

Issue of Notes Receivable

Repayment of Note Payable

Collection of Notes Receivable

Increase in Inventory

Loss on Sale of Equipment

Sale of Equipment

Net Decrease in Cash

Net Cash Provided by Financing Activities

Operating Activities

Net Increase in Cash

Financing Activities

Net Cash Provided by Investing Activities

Net Cash Used by Operating Activities

Net Cash Used by Investing Activities

Net Cash Used by Financing Activities

Cash, January 1

Cash, December 31

Investing Activities

Net Cash Provided by Operating Activities

Net Decrease in Cash

Cash, December 31

Investing Activities

Net Cash Used by Operating Activities

Cash, January 1

Financing Activities

Net Cash Provided by Investing Activities

Net Cash Used by Investing Activities

Net Cash Used by Financing Activities

Operating Activities

Net Increase in Cash

Net Cash Provided by Operating Activities

Net Cash Provided by Financing Activities

Net Decrease in Cash

Net Increase in Cash

Cash, December 31

Net Cash Used by Operating Activities

Net Cash Provided by Investing Activities

Net Cash Used by Financing Activities

Investing Activities

Cash, January 1

Net Cash Provided by Operating Activities

Net Cash Provided by Financing Activities

Net Cash Used by Investing Activities

Financing Activities

Operating Activities

Financing Activities

Net Cash Provided by Operating Activities

Net Increase in Cash

Net Cash Provided by Financing Activities

Net Cash Used by Operating Activities

Operating Activities

Net Cash Used by Investing Activities

Net Cash Used by Financing Activities

Net Decrease in Cash

Cash, January 1

Cash, December 31

Net Cash Provided by Investing Activities

Investing Activities

$

Note: Equipment costing $was purchased by issuing a note payable.