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Current Attempt in Progress The income statement of Sheridan Company is shown below. SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales $773,000 Cost of goods sold 548,000 Gross profit 225,000 Operating expenses Selling expenses 51,000 Administrative expenses 92,000 143,000 Net income $82,000 Additional information: 1. Accounts receivable decreased $66,000 during the year. Additional information: 1. Accounts receivable decreased $66,000 during the year. 2. Inventory increased $37,000 during the year. 3. Prepaid expenses increased $12,000 during the year. 4. Accounts payable increased $24,000 during the year. 5. Accrued expenses payable increased $6,000 during the year. 6. Administrative expenses include depreciation expense of $20,000. Prepare the operating activities section of the statement of cash flows using the direct method. SHERIDAN COMPANY Statement of Cash Flows (Partial) For the Quarter Ended December 31, 2020 Cash Flows from Operating Activities Cash Receipts from Customers Prepare the operating activities section of the statement of cash flows using the direct method. SHERIDAN COMPANY Statement of Cash Flows (Partial) For the Quarter Ended December 31, 2020 Cash Flows from Operating Activities Cash Receipts from Customers $ Increase in Inventory $ Net Cash Provided by Operating Activities $

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