Prepare the operating activities section of the statement of cash flows, using the indirect method.

Selected information from Sandhill Ltd.'s statement of financial position and statement of income is as follows: SANDHILL LTD. Statement of Financial Position (partial) December 31 2021 2020 Current assets Accounts receivable $7,800 $12,400 Inventory 5,000 4,800 Prepaid expenses 3,400 1,800 Current liabilities 3,500 2,800 Accounts payable 1.900 900 Income tax payable 2,000 1,500 Property tax payable 5.100 8,200 Bank loan payable-current portion SANDHILLLTD. Statement of Income Year Ended December 31, 2021 Sales $195,000 Cost of goods sold 114,000 Gross profit 81,000 Operating expenses 57,000 Income from operations 24,000 Interest expense 1,800 Income before income tax 22,200 Income tax expense 3,200 Net income $19,000 Additional information: The bank loan was received in the past to finance the purchase of equipment. Operating expenses included depreciation expense of $11,700 and a loss of $5.900 on the disposal of equipment