Sandhill Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. SANDHILL COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3,800 Expenses Cost of goods sold $1,190 Salaries and benefits Heat, light, and power Depreciation Property taxes Patent amortization Miscellaneous expenses Interest 2,180 Income before income taxes 1,620 Income taxes 810 Net income Retained earnings-Jan. 1, 2020 330 1,140 Stock dividend declared and issued 610 Retained earnings-Dec. 31, 2020 $530 810 SANDHILL LUMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2020 2019 Current assets Cash $393 $170 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 770 500 Inventory 720560 Total current assets 1,893 1,280 Long-term assets Land 150 60 Buildings and equipment 900 600 Accumulated depreciation-buildings and equipment (190) (110) Patents (less amortization) 90 120 Total long-term assets 950 670 Total assets $2,843 $1,950 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Notes payable Total current liabilities Long-term notes payable-due 2022 $424 $350 3930 340 340 803 720 190 190 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) SANDHILL COMPANY Statement of Cash Flows ($000 Omitted)