The following are the financial statements of Sheridan Company. SHERIDAN COMPANY Balance Sheet December 31 Assets 2021 2020 Cash $41,800 $22,000 Accounts receivable 33,000 15,400 Inventory 29,700 22,000 Equipment 66,000 85,800 Accumulated depreciation-equipment_(31,900) (26,400) Total $138,600 $118,800 Liabilities and Shareholders' Equity Accounts payable $26,400 $16,500 Income taxes payable 7,700 8,800 Notes payable 29,700 36,300 Common shares 19,800 15,400 Retained earnings 55,000 41,800 Total $138,600 $118,800 SHERIDAN COMPANY Income Statement For the Year Ended December 31, 2021 Sales $266,200 Cost of goods sold 192,500 Gross profit 73,700 Operating expenses 26,400 Income from operations 47,300 Interest expense 3,300 Income before income taxes 44,000 Income tax expense 8,800 Profit $35,200 Additional Information: 1. Dividends declared and paid were $22,000. Sheridan reports under ASPE. 2. During the year, equipment was sold for $9,350 cash. This equipment cost $19,800 originally and had a carrying value of $9,350 at the time of sale. 3. All depreciation expense, $15,950, is in the operating expenses. 4 All sales and purchases are on account. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with (15,000).) SHERIDAN COMPANY Cash Flow Statement - Indirect Method Adjustments to reconcile profit to ament $