Question

The current sections of Sheridan Company's balance sheets at December 31, 2019 and 2020, are presented here. Sheridan's net income for 2020 was $152,700. Depreciation expense was $24,300. 2019 2018 Current assets Cash Accounts receivable Inventory $107,100 $95,300 109,200 78,300 157,800 171,100 26,100 25,300 $400,200 $370,000 Prepaid expenses Total current assets Current liabilities Accrued expenses payable Accounts payable $15,300 $9,900 84,700 95,300 $100,000 $105,200 Total current liabilities Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Sheridan Company Partial Statement of Cash Flows Adjustments to reconcile net income to

Answer 1

Answer-

SHERIDAN COMPANY
STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31, 2019
Particulars		Amount
		$
Cash flow from operating activities
Net Income		152700
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation expense		24300
Change in operating assets & liabilities
Increase in Accounts receivable		-30900
Decrease in inventory		13300
Increase in prepaid expenses		-800
Decrease in accounts payable		-10600
Increase in accrued expenses payable		5400
Net cash flow from operating activities		153400