View Policies SFP accounts of Sandhill Inc., which follows IFRS, follow: SANDHILL INC. Comparative Statement of Financial Position Accounts December 31, 2020 and 2019 December 31 Debit accounts 2020 2019 Cash $45,535 $34,200 Accounts receivable 67,080 59,500 Merchandise inventory 30,560 24,500 Long-term FV-NI investments 23,580 40,900 Machinery 30,060 18,850 Buildings 67,500 56,350 Land 7,500 7,500 $271,815 $241,800 Credit accounts Allowance for doubtful accounts Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable-non-trade Common shares Retained earnings $3,655 5,870 13,890 29,860 2,435 910 25,100 150,000 40,095 $271,815 $2,905 2,500 9,400 24,600 1,190 1,410 30,100 125,000 44,695 $241,800 Additional information. Additional information: Sandhill Inc. has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2. Cash dividends declared during the year were $11,220. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $19,600 and had a fair value at December 31, 2019, of $24,850 were sold during the year for $23,210. Machinery that cost $3,800 and had $750 of depreciation accumulated was sold for $2,210. 3. 4. Sandhill's 2020 statement of income is as follows: $640,000 385,000 255,000 180,900 74,100 Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,610 depreciation and $5,400 bad debts) Income from operations Loss on disposal of FV-Nl investments Interest expense Loss on disposal of machinery Income before tax Income tax expense Net income $(1,640) (3,000) (840) (5,480) 68,620 37,000 $31,620 Calculate net cash flow from operating activities 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).) Calculate net cash flow from operating activities using the direct method. (Show amounts that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).) SANDHILL INC. Statement of Cash Flow $ $