The statement of income and unclassified statement of financial position for Sheridan Inc. follow: Question 7 of 7 \begin{tabular}{|c|c|c|} \hline lotarassets & 00 & \\ \hline \multicolumn{3}{|l|}{ Liabilities and Shareholders' Equity } \\ \hline Accounts payable & $94,130 & $90,760 \\ \hline Refund liability & 4,020 & 2,410 \\ \hline Deferred revenue & 11,800 & 5,890 \\ \hline Bankloan payable-current portion & 130,200 & 98,800 \\ \hline Bankloan payable-non-current portion & 90,600 & 156,520 \\ \hline Common shares & 295.000 & 275,400 \\ \hline Retained earnings & 274.250 & 193,140 \\ \hline Total liabilities and shareholders' equity & $900,000 & $822,920 \\ \hline \end{tabular} Sheridan Inc. Statement of Income Year Ended March 31, 2024 Sheridan Inc. Statement of Income Year Ended March 31, 2024 Sales \begin{tabular}{r} $589,730 \\ 172,910 \\ \hline 416,820 \\ 134,800 \\ \hline 282,020 \end{tabular} Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses \begin{tabular}{|c|c|c|} \hline Unrealized loss on trading investments & $13.800 & \\ \hline Interest expense & 6,010 & 19.810 \\ \hline Income before income tax & & 262,210 \\ \hline Income tax expense & & 55,190 \\ \hline Net income & & $207,020 \\ \hline \end{tabular} Additional information regarding 2024 : 1. Operating expenses include $74,600 of depreciation expense and a $16,600 loss on disposal of equipment. 2. No trading investments were bought or sold during the year, but management intends to trade some soon. 3. Prepaid expenses relate to operating expenses. 4. New equipment costing $98,730 was purchased by paying $17,730 cash and issuing common shares worth $81,000. These were the only common shares issued during the year. 5. Old equipment having an original cost of $77,300 was sold for $9,450. 6. Accounts payable relate to inventory suppliers. 7. A new $91,000 bankloan was received during the year and bank loan payments were also made during the year. 8. No common shares were issued for cash during the year, but some were bought back and cancelled at the same price that they were originally issued at. 9. The company paid dividends during the year. (a) Prepate the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either asign es, 15,000 or in porenthesises (15,000) ) SHERIDAN INC. Statement of Cash Flows $ Adjustments to reconcile net income to $