Reference no: EM132606660

Sheridan Shoes' comparative balance sheet is presented below. Sheridan reports under ASPE.

SHERIDAN SHOES

Balance Sheet

December 31

Assets                                                             2021                             2020

Cash                                                    $31,020                   $19,470

Accounts receivable                                 26,620                    24,530

Long-term investments                               25,300                    17,600

Equipment                                                  66,000                  77,000

Accumulated depreciation-equipment           (15,400 )              (11,000 )

Total                                                        $133,540              $127,600

Liabilities and Shareholders' Equity

Accounts payable                                          $21,560                $12,210

Notes payable                                                 11,000                33,000

Common shares                                                  66,000               49,500

Retained earnings                                                 34,980          32,890

Total                                                                      $133,540        $127,600

Additional Information:

1. Profit was $31,130. Dividends declared and paid were $29,040.

2. Equipment that cost $11,000 and had accumulated depreciation of $1,320 was sold for $4,730.

3. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Question 1: Prepare statement of cash flows for 2021 using the indirect method.