View Policies Current Attempt in Progress Presented below is the comparative balance sheet for Sandhill Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: SANDHILL INC. Balance Sheet December 31 Assets 2021 2020 Cash $61,000 $98,000 Accounts receivable 101.000 75,000 Inventory 205,000 155,500 Long-term investment 101,500 0 Property, plant, and equipment 535,000 460,000 Less: Accumulated depreciation (162.500) (140,000) $841.000 $648,500 Liabilities and Shareholders' Equity Accounts payable $57,500 $47,000 Dividends payable 6,000 0 Income tax payable 14.000 15,000 Long-term notes payable 25.000 0 Common shares 630,000 525,000 Retained earnings 108,500 61,500 $841,000 $648,500 SANDHILL INC. Income Statement Year Ended December 31, 2021 Sales $657,000 Cost of goods sold 432,000 Gross profit 225,000 Windows IDEE Windows, Operating expenses $147.500 Loss on sale of equipment 3.000 150.500 SANDHILL INC. Income Statement Year Ended December 31, 2021 Sales $657.000 Cost of goods sold 432,000 Gross profit 225.000 Operating expenses $147,500 Loss on sale of equipment 3,000 150.500 Profit from operations 74,500 Interest expense 3,000 Interest revenue (4,500) (1,500) Profit before income tax 76,000 Income tax expense 14.000 Profit $62,000 Additional information: 1. Cash dividends of $15,000 were declared. 2. A long-term investment was acquired for cash at a cost of $101,500. 3. 4. Depreciation expense is included in the operating expenses. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9,000 at the time of sale. 5. 6. The company issued a note payable for $28,000 and repaid $3.000 by year end. 7. All purchases of inventory are on credit. 8. Accounts Payable is used only to record purchases of inventory. DE Windows Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a- signe.g.-15.000indows, or in parenthesis e.g. (15,000).) SANDHILL INC. Cash Flow Statement - Direct Method $ $ e Windows DE Windows - Windows MindoHS