The following information is provided for Sheridan's Chocolate Company: SHERIDAN CHOCOLATE COMPANY Balance Sheet May 31 Assets 2021 2020 Cash $29,675 $46,250 Accounts receivable 87,950 78.250 Inventory 182,000 159.250 Prepaid expenses 5,700 7,200 Land 133,250 78,500 Equipment 317,000 197,000 Accumulated depreciation-equipment (75,200 (39,250) Total assets $680,375 $527,200 Liabilities and Shareholders' Equity Accounts payable $42,550 $39,250 Dividends payable 7,200 5,700 Income taxes payable Mortgage payable 2,900 6,700 129.000 79,250 Common shares 217,500 165,250 Retained earnings 281,225 231,050 Total liabilities and shareholders' equity $680,375 $527,200 Additional Information: 1. 2. 3. 4. 5. Profit for 2021 was $112,425. Common shares were issued for $52,250. Land with a cost of $52,250 was sold at a loss of $19,700. Purchased land with a cost of $107,000 with a $57,250 down payment and financed the remainder with a mortgage note payable. No equipment was sold during 2021. 6. Net sales for the year were $674,400. 7. Cost of goods sold for the year was $400.600. 8. Operating costs, including depreciation expense, were $98,500. 9. Interest expense was $5,700. 10. Income tax expense was $37,475. 11. Accounts payable is used for merchandise purchases. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash Flow Statement - Direct Method > > > > A $ Note X: Land with a cost of $ mortgage note payable for $ S was purchased by paying $ cash and issuing a