Sheridan Company issued the following statement of cash flows for 2017.
Sheridan Company
Statement of Cash Flows-Indirect Method
For the Year Ended December 31, 2017 |
| Cash flows from operating activities |
| Net income |
$199,066 |
| Adjustments to reconcile net income to net cash |
| provided by operating activities: |
| Depreciation expense |
mce_markernbsp;30,703 |
| Decrease in accounts receivable |
32,053 |
| Increase in inventory |
(16,870) |
|
| Decrease in accounts payable |
(7,423) |
|
| Loss on disposal of plant assets |
11,134 |
|
49,597 |
|
| Net cash provided by operating activities |
248,663 |
| Cash flows from investing activities |
| Sale of investments |
10,459 |
| Purchase of equipment |
(81,651) |
|
| Net cash used by investing activities |
(71,192) |
|
| Cash flows from financing activities |
| Issuance of stock |
67,480 |
| Payment on long-term note payable |
(33,740) |
|
| Payment for dividends |
(43,862) |
|
| Net cash used by financing activities |
(10,122) |
|
| Net increase in cash |
167,349 |
| Cash at beginning of year |
43,862 |
|
| Cash at end of year |
$211,211 |
|
(a) Compute free cash flow for Sheridan Company.