Selected information from Sheridan Ltd.'s statement of financial position and statement of income is as follows:...

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Selected information from Sheridan Ltd.'s statement of financial position and statement of income is as follows: Sheridan Ltd. Statement of Financial Position (partial) December 31 2024 2023 Current assets Accounts receivable $7,400 $12,600 Inventory 6,200 5,000 Prepaid expenses 4,000 2,000 Current liabilities Accounts payable $3,650 $2,300 Income tax payable 1,300 700 Property tax payable 2,400 1,300 Bank loan payable-current portion 5,700 9,200 Sheridan Ltd. Statement of Income Year Ended December 31, 2024 Sales $190,000 Cost of goods sold 115,000 Gross profit 75,000 Operating expenses 57,000 Income from operations 18,000 Interest expense 1,900 Income before income tax 16,100 Income tax expense 3,800 Net income $12,300 Additional information: 1. The bank loan was received in the past to finance the purchase of equipment. 2. Operating expenses included depreciation expense of $11,200 and a loss of $5,000 on the disposal of equipment. (a) Prepare the operating activities section of the statement of cash flows 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 LTD. Statement of Cash Flows (Partial) Adjustments to reconcile net income to Net Income Decrease in Accounts Receivable +A +A > > > > $ Selected information from Sheridan Ltd.'s statement of financial position and statement of income is as follows: Sheridan Ltd. Statement of Financial Position (partial) December 31 2024 2023 Current assets Accounts receivable $7,400 $12,600 Inventory 6,200 5,000 Prepaid expenses 4,000 2,000 Current liabilities Accounts payable $3,650 $2,300 Income tax payable 1,300 700 Property tax payable 2,400 1,300 Bank loan payable-current portion 5,700 9,200 Sheridan Ltd. Statement of Income Year Ended December 31, 2024 Sales $190,000 Cost of goods sold 115,000 Gross profit 75,000 Operating expenses 57,000 Income from operations 18,000 Interest expense 1,900 Income before income tax 16,100 Income tax expense 3,800 Net income $12,300 Additional information: 1. The bank loan was received in the past to finance the purchase of equipment. 2. Operating expenses included depreciation expense of $11,200 and a loss of $5,000 on the disposal of equipment. (a) Prepare the operating activities section of the statement of cash flows 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 LTD. Statement of Cash Flows (Partial) Adjustments to reconcile net income to Net Income Decrease in Accounts Receivable +A +A > > > > $