The statement of income and unclassified statement of financial position for Sandhill Inc. follow: Sandhill Inc. Statement of Financial Position December 31 Assets 2024 2023 Cash $82,800 $46,600 Accounts receivable 82,100 37,400 Inventory 131,000 101,000 Estimated inventory returns 1,580 1.110 Long-term investments 93,500 106,000 Equipment 292,400 207,000. Accumulated depreciation (48,800) (40,300) Total assets $634,580 $458,810 Liabilities and Shareholders' Equity Accounts payable $61,500 $48,600 Property tax payable 11,000 18,200 Refund liability 850 730 Bank loan payable-current portion 127,000 60,400 Bank loan payable-non-current portion 14,100 9,900 Common shares 240,000 200,000 Retained earnings 180,130 120,980 Total liabilities and shareholders' equity $634,580 $458,810 Sandhill Inc. Statement of Income Year Ended December 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Income from operations $321,000 99,400 221,600 82,600 139,000 Other income and expenses Interest expense $13,000 Realized loss on sale of long-term investments 7,300 20,300 Income before income tax 118,700 Income tax expense 27,720 Net income $90,980 Additional information regarding 2024: 1. Long-term investments were sold for $5,200, resulting in a realized loss of $7,300. 2. New equipment costing $141,000 was purchased for $70,200 cash and a $70,800 bank loan payable. 3. Equipment costing $55,600 was sold for $15,600, resulting in a gain of $10,700. 4. Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses. 5. A dividend was paid during the year. 6. Operating expenses include $59,200 of depreciation expense and an $10,700 gain on disposal of equipment. 7. The company issued common shares for $60,000 cash and bought back and retired some other common shares at the cost they were originally issued at. (a) Prepare the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)