Problem 23-01 The following are Sandhill Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable 2020 $822,600 1,139,300 1,835,600 3,276,300 (1,165,600) 312,200 251,900 $6,472,300 2019 $700,100 1,157,900 1,726,700 2,980,900 (1,047,400) 272,500 Increase (Decrease) $122,500 (18,600 ) 108,900 295,400 (118,200) 39,700 251,900 $681,600 Total assets $5,790,700 $949,400 49,700 99,100 $66,600 (19,500) (19,900 ) 355,000 Accounts payable Income taxes payable Dividends payable Lease liabililty Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,016,000 30,200 79,200 355,000 500,000 1,501,300 2,990,600 $6,472,300 500,000 1,501,300 2,691,200 $5,790,700 299,400 $681,600 Additional information: 1. On December 31, 2019, Sandhill acquired 25% of Myers Co.'s common stock for $272,500. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,090,000. Myers reported income of $ 158,800 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. 2. During 2020, Sandhill loaned $255,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $3,600, plus interest at 10%, on December 31, 2020. . On January 2, 2020, Sandhill sold equipment costing $59,600, with a carrying amount of $37,800, for $39,900 cash. 4. On December 31, 2020, Sandhill entered into a capital lease for an office building. The present value of the annual rental payments is $355,000, which equals the fair value of the building. Sandhill e first rental payment of $60,100 when due on January 2, 2021. 5. Net income for 2020 was $378,600. 6. Sandhill declared and paid the following cash dividends for 2020 and 2019. Declared Paid Amount 2020 December 15, 2020 February 28, 2021 $79,200 2019 December 15, 2019 February 28, 2020 $99,100 Prepare a statement of cash flows for Sandhill Corp. for the year ended December 31, 2020, 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).)