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The comparative statement of financial position for Sandhill Corporation shows the following noncash current asset and liability accounts at March 31: 2021 2020 Accounts receivable
The comparative statement of financial position for Sandhill Corporation shows the following noncash current asset and liability accounts at March 31: 2021 2020 Accounts receivable $60,000 $48,000 Inventory 78,000 61,500 Accounts payable 29,000 45,000 Dividends payable 1,100 2,200 Sandhill's statement of income reported the following selected information for the year ended March31, 2021: net income was $280,000, depreciation expense was $62,000, and a loss on the disposal of land was $14,000. Sandhill uses a perpetual inventory system. Calculate net cash provided (used) by operating activities using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SANDHILL CORPORATION Statement of Cash Flows (Partial) Month Ended March 31.2021 Operating activities Net income Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense Profit on disposal of land 62000 14000 Accounts receivable increase 16500 Inventory increase Accounts payable decrease Net cash provided by operating activities 12000 16000 280000 31500 311500
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