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Question 1 Sandhill Ltd., which follows ASPE had the following comparative statement of financial position: Sandhill Ltd. Comparative Statement of Financial Position December 31 Assets
Question 1 Sandhill Ltd., which follows ASPE had the following comparative statement of financial position: Sandhill Ltd. Comparative Statement of Financial Position December 31 Assets 2021 2020 Cash $ 85,000 $46,100 Accounts receivable 139,500 101.000 Inventory 76,500 120,600 Prepaid insurance 9,700 7.600 Equipment 309,000 273,800 Accumulated depreciation equipment (71,500) (52,000 Total assets $548,200 $497,100 Liabilities and Shareholders' Equity Accounts payable $ 88,900 $ 73,000 Salaries and wages payable 12,900 7,900 Income taxes payable 16,900 18.900 Mortgage payable 110.900 124.000 Common shares 220.500 210,000 Retained earnings 98,100 63,300 Total liabilities and shareholders' equity 5545,200 $497,100 Additional information: Net income was $57,500. New equipment was purchased and none was sold. . Common shares were issued for cash. Cash dividends were paid to common shareholders. Prepare the statement of cash flows using the indirect format. (Show amounts that decrease cash flow with either 8 - signe.g.-15,000 or in parenthesis e.g. (15,000).) Sandhill Ltd. Statement of Cash Flows Adjustments to reconcile net income to net cash provided by operating activities
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