SANDHILL INC. Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income $ Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Sale of Investments Increase in Account Receivable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Land Sale of Investments Net Cash Used by Investing Activities 5800 Net Cash Used by Investing Activities Cash Flows from Financing Activities Payment of Cash Dividends Retirement of Notes Payable Issuance of Common Stock 43100 Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Year 31900 Cash at End of Year $ 47200 Noncash Investing and Financing Activities Land Purchased through Issuance of Bonds $ 61900 Sandhill Inc. had the balance sheet shown below at December 31, 2024. During 2025, the following occurred: 1. Sandhill Inc. sold part of its investment portfolio for $20,100. This transaction resulted in a loss of $2,200 for the firm. The company classifies its investments as available-for-sale. 2. A tract of land was purchased for $25,900 cash. 3. Long-term notes payable in the amount of $30,100 were retired before maturity by paying $30,100 cash. 4. An additional $43,100 in common stock was issued at par. 5. Dividends of $20,100 were declared and paid to stockholders. 6. Net income for 2025 was $21,900 after allowing for depreciation of $9,100. 7. Land was purchased through the issuance of $61,900 in bonds payable. 8. At December 31,2025 , Cash was $47,200, Accounts Receivable was $62,700, and Accounts Payable remained at $61,900. SANDHILL INC. Balance Sheet December 31, 2025 Assets Cash Accounts Receivable Investments Plant Assets Land $ 86900 138500 $ $ 315000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable 76900 Common Stock 200900 42200 Retained Earnings Dividends Payable $