*Please Help Answer Properly, Will Give Thumbs Up!

The statement of income and unclassified statement of financial position for Sandhill, Inc. follow:

SANDHILL, INC. Statement of Financial Position December 31
Assets		2021			2020
Cash		$97,600			$48,000
Trading investments		130,000			114,000
Accounts receivable		75,500			40,000
Inventory		120,100			92,000
Estimated inventory returns		3,000			2,500
Prepaid expenses		18,800			27,200
Equipment		278,500			254,000
Accumulated depreciation		(47,500	)		(52,000	)
Total assets		$676,000			$525,700
Liabilities and Shareholders Equity
Accounts payable		$100,000			$75,700
Property tax payable		10,900			6,400
Refund liability		1,100			800
Bank loan payablecurrent portion		70,000			105,300
Bank loan payablenoncurrent portion		30,000			30,000
Common shares		220,000			195,000
Retained earnings		244,000			112,500
Total liabilities and shareholders equity		$676,000			$525,700

SANDHILL, INC. Statement of Income Year Ended December 31, 2021
Sales					$571,200
Cost of goods sold					189,300
Gross profit					381,900
Operating expenses					116,480
Income from operations					265,420
Other income and expenses
Unrealized gain on trading investments		$16,000
Interest expense		(4,780	)		11,220
Income before income tax					276,640
Income tax expense					43,000
Net income					$233,640

Additional information regarding 2021:

1.		Prepaid expenses and property tax payable relate to operating expenses.
2.		New equipment costing $82,000 was purchased for $23,700 cash and a $58,300 long-term bank loan payable.
3.		Old equipment having an original cost of $57,500 was sold for $1,700.
4.		Accounts payable relate to inventory suppliers.
5.		Some of the bank loan was repaid during the year.
6.		A dividend was paid during the year.
7.		Operating expenses include $46,600 of depreciation expense and a $4,700 loss on disposal of equipment.
8.		Common shares were issued for $42,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at.

(a) Prepare 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).)

SANDHILL, INC. Statement of Cash Flows Year Ended December 31, 2021 $ Adjustments to reconcile net income to $ >