Additional Problem 12 Sheridan Ltd., which follows ASPE, had thefollowing comparative statement of financial position: SheridanLtd. Comparative Statement of Financial Position As at December 31Assets 2018 2017 Cash $ 70,520 $ 43,000 Accounts receivable 116,96087,720 Inventories 68,800 103,200 Prepaid insurance 8,600 6,880Equipment 264,880 223,600 Accumulated depreciation-equipment(60,200 ) (43,000 ) Patents 68,800 86,000 Total assets $ 538,360 $507,400 Liabilities and Shareholders’ Equity Accounts payable $79,120 $ 68,800 Interest payable 6,880 10,320 Wages payable 13,7606,880 Income taxes payable 13,760 17,200 Long-term note payable103,200 118,680 Common shares 223,600 223,600 Retained earnings98,040 61,920 Total liabilities and shareholders’ equity $ 538,360$ 507,400 Additional information: 1. Net income for the fiscal yearwas $46,440. 2. Equipment that cost $34,400 and was 70% depreciatedwas sold during 2018, for a gain of $3,440. 3. No patents werepurchased or sold during the fiscal year. Prepare the statement ofcash flows using the indirect format. (Show amounts that decreasecash flow with either a - sign e.g. -15,000 or in parenthesis e.g.(15,000).) Sheridan Ltd. Statement of Cash Flows $ Adjustments toreconcile net income to net cash provided by operating activities:$ $ $ $ $ $ $