Using indirect method step-by-step

SFP accounts of Sandhill Inc, which follows IFRS, follow: Additional information: Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. Cash dividends declared during the year were $10,460. 2. A. 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. 3. FV-NI investments that cost $20,400 and had a fair value at December 31,2022 , of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) 4. Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2,190. Sandhill's 2023 statement of income is as follows: Additional information: Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. Cash dividends declared during the year were $10,460. 2. A. 20% stock dividend was decl ared during the year and $25,000 of retained earnings was capitalized. 3. FV-NI investments that cost $20,400 and had a fair value at December 31,2022 , of $25,300 were sold during the year for $23,200. (changes in these trading securities are shown net on the SCF) 4. Machinery that cost $3,790 and had $750 of depreciation accumulated was sold for $2,190. Sandhill's 2023 statement of income is as follows: Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. 15,000 or in parenthesis e.g. (15,000)