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The following are Sheridan Corp.s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to

The following are Sheridan Corp.s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

COMPARATIVE BALANCE SHEETS

2017

2016

Increase (Decrease)

Cash

$814,600

$706,000

$108,600

Accounts receivable

1,129,100

1,176,600

(47,500

)

Inventory

1,861,900

1,719,500

142,400

Property, plant, and equipment

3,335,800

2,940,300

395,500

Accumulated depreciation

(1,159,600

)

(1,046,100

)

(113,500

)

Investment in Myers Co.

313,100

277,300

35,800

Loan receivable

249,200

249,200

Total assets

$6,544,100

$5,773,600

$770,500

Accounts payable

$1,013,700

$946,000

$67,700

Income taxes payable

29,900

50,000

(20,100

)

Dividends payable

80,200

99,800

(19,600

)

Lease liabililty

455,900

455,900

Common stock, $1 par

500,000

500,000

Paid-in capital in excess of parcommon stock

1,502,100

1,502,100

Retained earnings

2,962,300

2,675,700

286,600

Total liabilities and stockholders equity

$6,544,100

$5,773,600

$770,500

Additional information:

1. On December 31, 2016, Sheridan acquired 25% of Myers Co.s common stock for $277,300. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,109,200. Myers reported income of $143,200 for the year ended December 31, 2017. No dividend was paid on Myerss common stock during the year.
2. During 2017, Sheridan loaned $355,300 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $106,100, plus interest at 10%, on December 31, 2017.
3. On January 2, 2017, Sheridan sold equipment costing $60,400, with a carrying amount of $38,000, for $40,200 cash.
4. On December 31, 2017, Sheridan entered into a capital lease for an office building. The present value of the annual rental payments is $455,900, which equals the fair value of the building. Sheridan made the first rental payment of $60,200 when due on January 2, 2018.
5. Net income for 2017 was $366,800.
6. Sheridan declared and paid the following cash dividends for 2017 and 2016.

2017

2016

Declared December 15, 2017 December 15, 2016
Paid February 28, 2018 February 28, 2017
Amount $80,200 $99,800

Prepare a statement of cash flows for Sheridan Corp. for the year ended December 31, 2017, 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).)

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