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: 2020 $98,000 75,000 155,500 0 SANDHILL INC. Balance Sheet December 31 Assets 2021 Cash $57,900 Accounts receivable 101,000 Inventory 205,000 Long-term investment 101,500 Property, plant, and equipment 535,000 Less: Accumulated depreciation (162,500) $837,900 Liabilities and Shareholders' Equity Accounts payable $57,500 Dividends payable 6,000 Income tax payable 14,000 Long-term notes payable 25,000 Common shares 630,000 Retained earnings 105,400 $837,900 460,000 (140,000) $648,500 $47,000 0 15,000 0 525,000 61,500 $648,500 SANDHILL INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $147,500 Loss on sale of equipment 3,000 Profit from operations $653,900 432,000 221,900 150,500 71,400 1. 2. 4. Additional information: Cash dividends of $15,000 were declared. A long-term investment was acquired for cash at a cost of $101,500. 3. 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. The company issued a note payable for $28,000 and repaid $3,000 by year end. All purchases of inventory are on credit. Accounts Payable is used only to record purchases of inventory. 5. 6. 7. 8. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a-signe.g.-15,000 or in parenthesis eg. (15,000).) SANDHILL INC. Cash Flow Statement - Direct Method $ $ 2 of 7 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer 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: 2020 $98,000 75,000 155,500 0 SANDHILL INC. Balance Sheet December 31 Assets 2021 Cash $57,900 Accounts receivable 101,000 Inventory 205,000 Long-term investment 101,500 Property, plant, and equipment 535,000 Less: Accumulated depreciation (162,500) $837,900 Liabilities and Shareholders' Equity Accounts payable $57,500 Dividends payable 6,000 Income tax payable 14,000 Long-term notes payable 25,000 Common shares 630,000 Retained earnings 105,400 $837,900 460,000 (140,000) $648,500 $47,000 0 15,000 0 525,000 61,500 $648,500 SANDHILL INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $147,500 Loss on sale of equipment 3,000 Profit from operations $653,900 432,000 221,900 150,500 71,400 1. 2. 4. Additional information: Cash dividends of $15,000 were declared. A long-term investment was acquired for cash at a cost of $101,500. 3. 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. The company issued a note payable for $28,000 and repaid $3,000 by year end. All purchases of inventory are on credit. Accounts Payable is used only to record purchases of inventory. 5. 6. 7. 8. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a-signe.g.-15,000 or in parenthesis eg. (15,000).) SANDHILL INC. Cash Flow Statement - Direct Method $ $ 2 of 7 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit