Current Attempt in Progress Presented here are the financial statements of Sandhill Company. Sandhill Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $ 84,000 $ 48,000 Accounts receivable 48,000 23,400 Inventory $7,200 48 000 Property, plant, and equipment 144,000 187.200 Accumulated depreciation (76,800) [57,600) Total $266,400 $259.200 Liabilities and Stockholders Equity Accounts payable $ 45.600 $ 26,000 Income taxes payable 16,800 19.200 Bonds payable 40.800 79.200 Common stock 43,200 33,600 Retained earnings 120,000 91.200 Total $246,400 $259.200 Sandhill Company Income Statement For the Year Ended December 31, 2025 Sales revenue $580,800 Cost of goods sold 420,000 Gross profit 140,800 Selling expenses $43,200 Administrative expenses 14,400 57,600 Income from operations 103,200 Interest expense 7.200 Income before income taxes 96,000 Income tax expense 19,200 Net income $ 74,800 Additional data: 1. Depreciation expense was $42,000. 2. Dividends declared and paid were $48,000. 3. During the year, equipment was sold for $20,400 cash. This equipment originally cost $43,200 and had accumulated depreciation of $22,800 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash.Your answer is partially correct. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis eg. (15,000)) SANDHILL COMPANY Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income 76800 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 42000 Increase In Accounta Raceliable Increase In Inventory Increase In Accounta Payable 9600 Decrease In Income Thoo Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment 20400 Net Cash Provided by Investing Activities 20400 Cash Flows from Financing Activities Payment of Dividends Redemption of Bonds Issuance of Common Stock 9800 Net Cash Used by Financing Activities Net Increase In Cash Cash at Beginning of Perlod 48000 Cash at End of Perlod e Textbook and Media Save For Leter Last saved 4 days ago. Attempts: 8 of 15 used Submit Arswer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. (b) Your answer is correct. Compute free cash flow. (Show amounts that decrease free cash flow with either a - sign e.g. -15,000 or in parenthesis eg. (15,0001) Free cash flow S 44400