View Policies Current Attempt in Progress Selected information from Sandhill Ltd's statement of financial position and statement of income is as follows: SANDHILL LTD. Statement of Financial Position (partial) December 31 2021 2020 Current assets Accounts receivable $7,400 $12,400 Inventory 6,800 4,000 Prepaid expenses 4,400 2,100 Current liabilities Accounts payable 4,550 2,300 Income tax payable 1,000 800 Property tax payable 2,200 1,500 Bank loan payable-current portion 5,400 9,800 SANDHILLLTD. Statement of Income Year Ended December 31, 2021 Sales $195,000 Cost of goods sold 118,000 Gross profit 77,000 Operating expenses 59,000 Income from operations 18,000 Interest expense 1,600 Income before income tax 16,400 Income tax expense 3,000 Net income $13,400 1. The bank loan was received in the past to finance the purchase of equipment. 2. Operating expenses included depreciation expense of $11,600 and a loss of $5,400 on the disposal of equipment. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SANDHILL LTD. Operating activities Statement of Cash Flows (Partial) Year Ended December 31, 2021 Adjustments to reconcile net income to > 69 eTextbook and Media Save for Later Attempts: 0 of 2 used Submit