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Condensed financial data follow for Sandhill Ltd. Sandhill reports under ASPE. SANDHILL LTD. Balance Sheet December 31 Assets 2021 2020 Cash $97,410 $45,900 Accounts receivable
Condensed financial data follow for Sandhill Ltd. Sandhill reports under ASPE. SANDHILL LTD. Balance Sheet December 31 Assets 2021 2020 Cash $97,410 $45,900 Accounts receivable 80,600 43,200 Inventory 120,200 92,500 Prepaid expenses 43,000 27,800 Long-term investments 127,300 113,300 Property, plant, and equipment 268,500 241,400 Accumulated depreciation (53,400) (51,600 ) Total assets $683,610 $512,500 Liabilities and Shareholders' Equity Accounts payable Accrued expenses payable $94,500 $75,800 10,800 7,200 Property, plant, and equipment 268,500 241,400 Accumulated depreciation (53,400 (51,600) Total assets $683,610 $512,500 Liabilities and Shareholders' Equity Accounts payable $94,500 $75,800 Accrued expenses payable 10,800 7,200 Notes payable 117,500 159,000 Common shares 241,700 184,800 Retained earnings 219.110 85,700 Total liabilities and shareholders' equity $683,610 $512,500 SANDHILL LTD. Income Statement Year Ended December 31, 2021 Sales $492,200 Cost of goods sold 183,900 Gross profit 308,300 Operating expenses $58,500 SANDHILL LTD. Income Statement Year Ended December 31, 2021 Sales $492,200 Cost of goods sold 183,900 Gross profit 308,300 Operating expenses $58,500 Depreciation expense 46,000 Loss on sale of equipment 9,240 113,740 Profit from operations 194,560 Other expenses Interest expense 5,820 Profit before income tax 188,740 Income tax expense 42,700 Profit $146,040 Additional information: 1. New equipment costing $84,200 was purchased for $31,900 cash and a $52,300 note payable. 2 Equipment with an original cost of $57,100 was sold at a loss of $9.240. 3. Notes payable matured during the year and were repaid. 4. A long-term investment was acquired for cash. Prepare a cash flow statement for the year 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).) SANDHILL LTD. Cash Flow Statement-Indirect Method Adjustments to Reconcile Profit to SANDHILL LTD. Cash Flow Statement-Indirect Method Adjustments to Reconcile Profit to I Note X: Equipment was purchased by paying $ cash and issuing a note payable for $ Note X: Equipment was purchased by paying $ cash and issuing a note payable for $
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