Presented below is the comparative balance sheet for Sandhill Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: SANDHILL INC. Balance Sheet December 31 Assets 2021 Cash $60,600 Accounts receivable 101.000 Inventory 205,000 Long-term investment 101,500 Property, plant, and equipment 535,000 Less: Accumulated depreciation (162,500) $840,600 Liabilities and Shareholders' Equity Accounts payable $57,500 Dividends payable 6,000 Income tax payable 14,000 Long-term notes payable 25,000 Common shares 630,000 Retained earnings 108,100 $840,600 2020 $98.000 75.000 155,500 0 460,000 (140.000) $648,500 $47.000 0 15.000 0 525,000 61.500 $648.500 $656,600 432,000 224,600 SANDHILL INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $147,500 Loss on sale of equipment 3.000 Profit from operations Interest expense 3,000 Interest revenue (4,500) Profit before income tax Income tax expense Profit 150,500 74,100 (1.500 75,600 14.000 $61,600 Additional information: 1. Cash dividends of $15,000 were declared, 2. Along-term investment was acquired for cash at a cost of $101.500. 3 Depreciation expense is included in the operating expenses. 4. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9.000 at 5. the time of sale The company issued a note payable for $28,000 and repaid $3.000 by year end. All purchases of inventory are on credit. 8. Accounts Payable is used only to record purchases of inventory 6. 7. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a - signes. -15,000 or in parenthesis es. (15,000)) SANDHILL INC. Cash Flow Statement - Indirect Method Year Ended December 31, 2021 $ Adjustments to reconcile profit to $ > A > . . > A ( . >