Question

ES Question 8 Condensed financial data of Sheridan Company for 2017 and 2016 are presented below. SHERIDAN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) $1,810 $1,120 1,790 1,330 1,5701,940 1,870 1,740 (1,230) (1,150) 1,300 1,440 $7,110$6,420 $910 260 1,550 1,860 1,740 1,960 $7,110$6,420 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 200 1,370 2,460

Answer 1

SHERIDAN COMPANY
Statement of Cash flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Net Income		$     760
Adjustments to reconcile net income to ;
Depreciation expense	$      80		1230-1150
Gain on sale of investment	$   (80)
Increase in accounts receivable	$ (460)
Decrease in inventory	$   370
Increase in accounts payable	$   310
Decrease in accrued liabilities	$   (60)
		$     160
Net cash provided by operating activities		$     920
Cash flows from investing activities
Cash paid for purchase of plant assets	$   (60)		1740-1870+70
Cash received from sale of investments	$   220		1440-1300+80
Net cash provided by investing activities		$     160
Cash flows from financing activities
Cash paid for dividends	$ (260)
Cash paid to retire bonds	$ (180)
Cash received from issuance of common stock	$      50		1860-1740-70
Net cash used by financing activities		$   (390)
Net Increase in cash and cash equivalents		$     690
Cash and cash equivalents at beginning of period		$ 1,120
Cash and cash equivalents at end of period		$ 1,810
Non cash investing and financing activities
Acquisition of plant by issuing common stock		$        70

You can reach me over comment box if you have any doubts. Please rate this answer