Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).)

The comparative unclassified statement of financial position for Sunland Ltd. follows: SUNLANDLTD. Statement of Financial Position December 31 Assets 2021 Cash $54,000 Accounts receivable 85,000 Inventory 174,000 Estimated inventory returns 8,000 Long-term investments 79,000 Equipment 265,000 Accumulated depreciation (75,000) Total assets $590,000 2020 $29,000 80,500 181,500 4,000 110,000 156,000 (33,000) $528,000 Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity $27,000 9,000 116,000 219,000 219,000 $590,000 $ 41,000 4,000 180,000 171,000 132,000 $528,000 Additional information pertaining to 2021: 5. 6. 7. Net income was $88,700. Sales were $970,000. Cost of goods sold was $758,000. Operating expenses were $44,000, exclusive of depreciation expense. Depreciation expense was $42,000. Interest expense was $14,000. Income tax expense was $29,000. Long-term investments were sold at a gain of $5,700. No equipment was sold during the year. $64,000 of the bank loan was repaid during the year. Common shares were issued for $48,000. 9. 10. 11. SUNLAND LTD. Statement of Cash Flows-Indirect Method $ Adjustments to reconcile net income to $