The comparative unclassified statement of financial position for Sandhill Ltd. follows: SANDHILL LTD. Statement of Financial Position December 31 Assets 2024 2023 Cash $48,700 $25,000 Term deposits (maturing in 60 days) 5,300 1,000 Accounts receivable 80,000 76,000 Inventory 170,000 183,000 Estimated inventory returns 8,000 7,000 Long-term investments 76,000 115,000 Equipment 300,000 154,000 Accumulated depreciation (80,000) (33,000) Total assets $608,000 $528,000 Liabilities and Shareholders' Equity Accounts payable $35,000 $50,000 Refund liability 9,000 5,000 Bank loan payable (non-current) 154,000 167,000 Common shares 205,000 170,000 Retained earnings 205,000 136,000 Total liabilities and shareholders' equity $608,000 $528,000 Additional information pertaining to 2024: 1. Net income was $93,000. 2. Sales were $976,000. 3. Cost of goods sold was $754,000. 4. Operating expenses were $41,000, exclusive of depreciation expense. 5. Depreciation expense was $47,000. 6. Interest expense was $18,000. 7. Income tax expense was $29,000. 8. Long-term investments were sold at a gain of $6,000. These investments are carried at their cost, so gains and losses on these investments are recorded only when the investments are sold. 9. No equipment was sold during the year. 10. $13,000 of the bank loan was repaid during the year. 11. Common shares were issued for $35,000. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash Payments SANDHILL LTD. Statement of Cash Flows-Direct Method $ > > >