Question: Problem 12-7A (Part Level Submission) Presented below are the financial statements of Sheffield C...

Problem 12-7A (Part Level Submission) Presented below are the financial statements of Sheffield Company.

Sheffield Company Comparative Balance Sheets December 31
Assets		2017			2016
Cash		$ 105,000			$ 60,000
Accounts receivable		60,000			42,000
Inventory		84,000			60,000
Property, plant, and equipment		180,000			234,000
Accumulated depreciation		(96,000	)		(72,000	)
Total		$333,000			$324,000
Liabilities and Stockholders Equity
Accounts payable		$ 57,000			$ 45,000
Income taxes payable		21,000			24,000
Bonds payable		51,000			99,000
Common stock		54,000			42,000
Retained earnings		150,000			114,000
Total		$333,000			$324,000

Sheffield Company Income Statement For the Year Ended December 31, 2017
Sales revenue				$726,000
Cost of goods sold				525,000
Gross profit				201,000
Selling expenses		$54,000
Administrative expenses		18,000		72,000
Income from operations				129,000
Interest expense				9,000
Income before income taxes				120,000
Income tax expense				24,000
Net income				$ 96,000

Additional data:

1.		Depreciation expense was $52,500.
2.		Dividends declared and paid were $60,000.
		3. During the year equipment was sold for $25,500 cash. This equipment cost $54,000 originally and had accumulated depreciation of $28,500 at the time of sale. Prepare a statement of cash flows using the indirect method.

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