The income statement for the year ended December 31, 2020, for Sandhill Manufacturing Company contains the following condensed i
nformation. SANDHILL CO. INCOME STATEMENT Revenues $ 6,559,000 Operating expenses (excluding depreciation) $4,973,000 Depreciation expense 875,000 5,848,000 Income before income tax 711,000 Income tax expense 319,950 Net income $ 391,050 Included in operating expenses is a $22,000 loss resulting from the sale of machinery for $265,000 cash. The company purchased machinery at a cost of $753,000. Sandhill reports the following balances on its comparative balance sheets at December 31. SANDHILL CO. COMPARATIVE BALANCE SHEETS (PARTIAL) 2020 2019 Cash $624,550 $131,500 Accounts receivable 780,000 621,500 Inventory 843,500 869,000 Accounts payable 529,000 508,000 Income tax expense of $319,950 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled $195,000. Prepare 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 parenthes
