1. What is the purpose of the statement of cash flows? 2. Prepare ARC's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together. 3. Prepare ARC's balance sheet at December 31, 2018. 4. Prepare ARC's statement of cash flows using the indirect method for the year ended December 31, 2018. P14-33A Preparing the statement of cash flows-indirect method Accountants for Morganson, Inc. have assembled the following data for the year ended December 31, 2018: Learning OL Net Cash Used Act. $(15,500 2018 2017 Current Assets: Cash Accounts Receivable $ 99,400 64,100 83,000 $ 25,000 69,700 75,000 Merchandise Inventory Current Liabilities: Accounts Payable Income Tax Payable 57,600 55,200 14,800 16,800 784 chapter 14 Transaction Data for 2018: Issuance of common stock for cash Depreciation expense Purchase of equipment with cash Acquisition of land by issuing long-term notes payable Book value of building sold $ 38,000 24,000 74,000 119,000 54,000 Payment of notes payable Payment of cash dividends Issuance of notes payable to borrow cash Gain on sale of building Net income $ 46,100 50,000 62,000 4,500 68,500 Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. the statement of cash flows-indirect method with