Condensed financial data follow for Sandhill Ltd. Sandhill reports under ASPE.

SANDHILL LTD. Balance Sheet December 31
Assets		2021		2020
Cash		$117,160		$49,100
Accounts receivable		76,700		45,400
Inventory		129,200		92,950
Prepaid expenses		39,100		26,000
Long-term investments		126,200		112,200
Property, plant, and equipment		271,800		242,300
Accumulated depreciation		(54,700	)	(52,600	)
Total assets		$705,460		$515,350
Liabilities and Shareholders Equity
Accounts payable		$90,800		$76,000
Accrued expenses payable		11,500		6,900
Notes payable		121,300		150,100
Common shares		239,400		173,400
Retained earnings		242,460		108,950
Total liabilities and shareholders equity		$705,460		$515,350

SANDHILL LTD. Income Statement Year Ended December 31, 2021
Sales				$492,100
Cost of goods sold				183,900
Gross profit				308,200
Operating expenses		$58,900
Depreciation expense		45,400
Loss on sale of equipment		8,610		112,910
Profit from operations				195,290
Other expenses
Interest expense				5,250
Profit before income tax				190,040
Income tax expense				43,900
Profit				$146,140

Additional information:
1.		New equipment costing $89,100 was purchased for $21,200 cash and a $67,900 note payable.
2.		Equipment with an original cost of $59,600 was sold at a loss of $8,610.
3.		Notes payable matured during the year and were repaid.
4.		A long-term investment was acquired for cash.
5.		Accounts payable relate only to merchandise creditors.
6.		Accrued expenses payable and prepaid expenses relate to operating expenses.

Prepare the operating section of the cash flow statement using the direct method assuming that accounts payable relate only to merchandise creditors and that accrued expenses payable and prepaid expenses relate to operating expenses. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Prepare the operating section of the cash flow statement using the direct method assuming that accounts payable relate only to merchandise creditors and that accrued expenses payable and prepaid expenses relate to operating expenses. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) SANDHILL LTD. Cash Flow Statement (Partial) - Direct Method