Sandhill Ltd., which follows ASPE, had the following comparative Statement of Financial Position:

Sandhill Ltd. Comparative Statement of Financial Position

March 31 Assets

2021 2020

Cash $ 19,720 $ 13,920

Accounts receivable 69,600 46,400

Inventory 97,440 81,200

Prepaid expenses 6,960 4,640

Property, plant, and equipment 290,000 243,600

Accumulated depreciation (69,600 ) (55,680 )

Total assets $ 414,120 $ 334,080

Liabilities and Shareholders Equity Accounts payable $ 40,600 $ 46,400

Interest payable 3,480 4,640

Income taxes payable 25,520 13,920

Bonds payable 104,400 74,240

Common shares 110,200 92,800

Retained earnings 129,920 102,080

Total liabilities and shareholders equity $ 414,120 $ 334,080

Additional information: 1. Net income for the fiscal year was $44,080. 2. Equipment with an original cost of $34,800 was sold for $13,920 cash during 2021. The equipment was depreciated $13,920. This disposal resulted in a $6,960 loss. Prepare the statement of cash flows using the indirect format.