Sheridan Corporation had the following 2020 income statement. Revenues $95,000 Expenses 63,000 $32,000 In 2020, Sheridan had the following activity in selected accounts. Accounts Receivable 1/1/20 20,000 Revenues 95,000 12/31/20 22,100 Write-offs 900 Collections 92,000 Allowance for Doubtful Accounts Write-offs 900 1/1/20 1,200 Bad debt expense 1,900 12/31/20 2,200 (a) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the direct method. Sheridan Corporation Statement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Sheridan’s cash flows from 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 Corporation Statement of Cash Flows-Indirect Method (Partial)
Sheridan Corporation had the following 2020 income statement.
Revenues $95,000
Expenses 63,000
$32,000
In 2020, Sheridan had the following activity in selected accounts.
Accounts Receivable
1/1/20 20,000
Revenues 95,000
12/31/20 22,100
Write-offs 900
Collections 92,000
Allowance for Doubtful Accounts
Write-offs 900 1/1/20 1,200
Bad debt expense 1,900
12/31/20 2,200
(a) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the direct method.
Sheridan Corporation
Statement of Cash Flows-Direct Method (Partial)
$
$
(b) Prepare Sheridan’s cash flows from 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 Corporation
Statement of Cash Flows-Indirect Method (Partial)
$
$
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