120 (26) The Happy Company reported the following balance sheet and income statement data for 2018 and 2017: Assets 2018 2017 Income Statement Cash $29 21 Sales Revenue $200 Accounts Receivable 64 Cost of Goods Sold Inventory 5046 Gross Profit Prepaid Insurance Operating Expenses: Held to Maturity Securities Salaries Expense Land 80 60 Depreciation Expense Building and Equipment Bond Interest Expense Less: Accumulated Depr. (30) Insurance Expense $296 $242 Total Operating Expenses Liabilities Operating Income Accounts Payable Other Income (Expenses) Salaries Payable Investment Revenue Income Tax Payable Gain on Sale of Equipment LT Notes Payable Loss on Sale of Land Bonds Payable Total other income (expenses) Less: Discount on bonds Income before income taxes Shareholder's Equity Income tax expense Common Stock 150 Net Income Treasury Stock Retained Earnings 33 $296 $242 Note: You need to know how the decrease in the discount on bonds impacts interest expense and ultimately cash. It is worth the time to read this section in chapter 18 before you start this cash flow problem. The first part of chapter 18 (starting on page 775) gives a good overview of bonds. If you are not familiar with bonds, it is a good idea to start at the beginning of the chapter. If you feel good about recording a bond issuance and understand the concept of amortizing the premium or discount, then page 778 is a good place for you to start. Additional Information 1. $12 of bonds were retired at maturity. 2. Happy issued a $6 stock dividend and subsequently sold more shares of common stock. 3. A new building was acquired by issuing $30 note. Land that originally cost $15 was sold during the year. Prepare a full statement of cash flow for 2018 to answer the questions. You will need to prepare the operating section using the direct method and the indirect method. When you answer the questions in Blackboard, do not include dollar signs. Even if the amount is an outflow, enter it as a positive