Sandhill Company reported the following information for 2025. Sandhill Company Comparative Balance Sheets December 31 2025 2024 Change Increase/Decrease Assets Cash $141,600 $86,400 $55,200 Increase Accounts receivable 148,800 52,800 96,000 Increase Inventory 105,600 -0- 105,600 Increase Prepaid expenses 14,400 9,600 4,800 Increase Land 132,000 168,000 36,000 Decrease Buildings 480,000 480,000 -0- No change Accumulated depreciation-buildings (50,400) (33,600) 16,800 Increase Equipment 439,200 163,200 276,000 Increase Accumulated depreciation-equipment (67,200) (24,000) 43,200 Increase Totals $1,344,000 $902,400 Liabilities and Stockholders' Equity Accounts payable $103,200 $96,000 $7,200 Increase Accrued expenses payable 0 24,000 24,000 Decrease Bonds payable 240,000 360,000 120,000 Decrease Common stock ($1 par) 552,000 144,000 408,000 Increase Retained earnings 448,800 278,400 170,400 Increase Totals $1,344,000 $902,400 Sandhill Company Income Statement For the Year Ended December 31, 2025 Sales revenue $2,258.400 Cost of goods sold $1,140,000 Operating expenses 554,400 Interest expense 28,800 Loss on disposal of plant assets 4,800 1,728,000 Income before income taxes 530,400 Income tax expense 156,000 Net income $374,400 Additional information: 1. Operating expenses include depreciation expense of $96,000. 2. Land was sold at its book value for cash. 3. Cash dividends of $204,000 were declared and paid in 2025. 4. Equipment with a cost of $398,400 was purchased for cash. Equipment with a cost of $122,400 and a book value of $86,400 was sold for $81,600 cash. 5. Bonds of $120,000 were redeemed at their face value for cash. 6. Common stock ($1 par) was issued at par for $408,000 cash. SANDHILL COMPANY Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to