The comparative, unclassified statement of financial position for Sandhill Ltd. shows the following balances at December 31: Sandhill Ltd. Statement of Financial Position December 31 Assets 2021 2020 Cash $ 14,000 $0 Accounts receivable 20,000 33,000 Text Inventory 30,000 56,000 Land 101,000 114,000 Buildings 532,000 265,000 Accumulated depreciation-buildings (61,000) (97,000) Equipment 82,000 41,000 Accumulated depreciation-equipment (8,000) (8,000) Total assets $710,000 $404,000 Liabilities and Shareholders' Equity Bank overdraft $0 $12,000 Accounts payable $ 43,000 $ 26,000 Income tax payable 3,000 2,000 Interest payable 6,000 7,000 Interest payable 6,000 7,000 Dividends payable 3,000 1,000 Bank loan payable-current portion 31,000 21,000 Bank loan payable-non-current portion 375,000 211,000 Common shares 198,000 93,000 Retained earnings 51.000 31,000 Total liabilities and shareholders' equity $710,000 $404,000 Additional information regarding 2021: 1. Net income was $57,000. 2. Again of $7,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 3. A gain on the disposal of $34,000 was recorded when an old building was sold for $48,000 cash. A new building was purchased for $369,000 and depreciation expense on buildings for the year was $52,000. 4. Equipment costing $68,000 was purchased while a loss of $7,000 was recorded on equipment that was sold for $5,000. The equipment that was sold late in the year had accumulated depreciation of $15,000. 5. The company took out $212,000 of new bank loans during the year. 6. Dividends were declared and paid and no common shares were bought back by the company. (a) Prepare the statement of cash flows 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 LTD. Statement of Cash Flows-Indirect Method Text $ Adjustments to reconcile net income to > > > > A > > > > $ A ^ A