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Additional Problem 12Sheridan Ltd., which follows ASPE, had the following comparativestatement of financial position:Sheridan Ltd.Comparative Statement of Financial PositionAs at December 31Assets20182017Cash$70,520$43,000Accounts receivable116,96087,720Inventories68,800103,200Prepaid insurance8,6006,880Equipment264,880223,600Accumulated depreciation-equipment(60,200)(43,000)Patents68,80086,000Total assets$538,360$507,400Liabilities and Shareholders’EquityAccounts payable$79,120$68,800Interest payable6,88010,320Wages payable13,7606,880Income taxes payable13,76017,200Long-term note payable103,200118,680Common shares223,600223,600Retained earnings98,04061,920Total liabilities and shareholders’ equity$538,360$507,400Additional information:1.Net income for the fiscal year was $46,440.2.Equipment that cost $34,400 and was 70% depreciated was soldduring 2018, for a gain of $3,440.3.No patents were purchased or sold during the fiscal year.Prepare the statement of cash flows using the indirect format.(Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000)