View Policies Current Attempt in Progress SFP accounts of Sheridan Inc., which follows IFRS, follow: SHERIDAN INC. Comparative Statement of Financial Position Accounts December 31, 2020 and 2019 December 31 Debit accounts 2020 2019 Cash $44,965 $33,750 Accounts receivable 67,050 59,500 Merchandise inventory 29,990 24,000 Long-term FV-NI investments 23,030 40,250 Machinery 30,570 19,250 Buildings 67,810 56,650 Land 7,500 7,500 $270,915 $240,900 Credit accounts Allowance for doubtful accounts Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable $2,120 5,710 13,300 29,860 2,310 850 $1,370 2,350 8,800 24,600 1,050 1,350 Credit accounts Allowance for doubtful accounts Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable-non-trade Common shares Retained earnings $2,120 5,710 13,300 29,860 2,310 850 26,800 150,000 39,965 $1,370 2,350 8,800 24,600 1,050 1,350 31,800 125,000 44,580 $240,900 $270,915 Additional information: Sheridan Inc. has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2. Cash dividends declared during the year were $24,555. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $19,600 and had a fair value at December 31, 2019, of $25,100 were sold during the year for $22,800. Machinery that cost $3,750 and had $750 of depreciation accumulated was sold for $2,240. 3. 4. Sheridan's 2020 statement of income is as follows: $643,000 375,000 268,000 180,000 88,000 Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,610 depreciation and $5,400 bad debts) Income from operations Loss on disposal of FV-NI investments Interest expense Loss on disposal of machinery Income before tax Income tax expense Net income $(2,300) (3,000) (760) (6,060) 81,940 37,000 $44,940 Calculate net cash flow from operating activities 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).) SHERIDAN INC. Statement of Cash Flow $ $ $