The comparative statement of financial position for Sandhill Retailerslid Tollows: SANDHILLRETAILERS LTD. Statement of Financial Position December 31 Assets 2021 Cash 0 Accounts receivable 76,000 Inventory 219.000 Furniture 135,000 Accumulated depreciation (31,000) Total assets $ 399,000 2020 $ 15,000 49,000 167,000 168,000 (43,000 $ 356,000 Liabilities and Shareholders' Equity Bank overdraft Accounts payable Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity $ 12.000 65,000 94,000 49.000 179,000 $399.000 $ 45,000 105,000 59,000 147.000 5356.000 Additional information regarding 2021 1 Net income was $37.000, RE FB F7 FB F10 F11 Hitional information regarding 2021: Net income was $37.000. Depreciation expense was $17,000. During the year, the company did not receive any new bank loans. During the year, the company did not purchase furniture but did sell some furniture for $8,000, which resulted in a gai on disposal of $4,000. No common shares were issued during the year but some were repurchased at the cost at which they were originally Issued. During the year, the company paid all dividends declared. 5. 6. a) Prepare a statement of cash flows using the indirect method for 2021. (Show amounts that decrease cash flow with either a - signes -15,000 or in parenthesis eg. (15,000).) SANDHILL RETAILERS LTD. Statement of Cash Flows Year Ended December 31, 2021 ows from operating activities come o FI De TAILERS LTD. Statement of Cash Flows Year Ended December 31, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense Gain on disposal of fumiture V 17000 -4000 Increase in accounts receivable -27000 52000 Increase in inventory Increase in ad n accounts payable 20000 Net cash used by operating activities Cash flows from investing activities o earch DL. Cash flows from investing activities Proceeds from disposal of furniture 8000 Net cash provided by investing activities Cash flows from financing activities Repayment of bank loan - 11000 Repurchase of common shares -10000 Payment of cash dividends -5000 Net cash used by financing activities enter a total amount for section three Net decrease in cash Cash, January 1 Bankoverdraft. December 31