3. value: 10.00 points The comparative statements of financial position of Mikos Inc. as at December 31, 2017 and 2018, and its statement of earnings for the year ended December 31, 2018, are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2018 2017 Assets Cash $ 10,800 $ 18,800 Short-term investments 75,600 43,400 Accounts receivable 77,000 33,200 Inventories, at cost 57,600 41,800 Prepaid expenses 5,800 9.600 Land 52,200 79,000 Property, plant, and equipment, net 287,200 188,000 Intangible assets 25,800 31,600 $ 592,000 $445,400 $ Liabilities and Shareholders' Equity Accounts payable Income tax payable Accrued liabilities Long-term notes payable Contributed capital Retained earnings 18,800 $ 43,600 9,600 2,800 11,800 -0- 128,000 186,000 236,000 69,000 187,800 144,000 $ 592,000 $445,400 $ 904,000 MIKOS INC. Statement of Earnings For the Year Ended December 31, 2018 Sales Cost of sales Amortization expenseintangible assets Depreciation expenseproperty, plant, and equipment Operating expenses Interest expense $ 448,000 5,800 34,800 239,000 13,800 741,400 Earnings before income taxes Income tax expense 162,600 48,780 Net earnings $ 113,820 Additional information is as follows: a. Land was sold for cash at its carrying amount. b. The short-term investments will mature in February 2019. c. Cash dividends were declared and paid in 2018. d. New equipment with a cost of $167,800 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $19,000 were paid in cash, and notes of $39,000 were converted to shares. Required: 1. Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2018 by using the indirect method. (Negative answers should be indicated by a minus sign.) MIKOS INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net earnings $ 113.820 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization expense 40,600 Increase in accounts receivable 43,800 Decrease in prepaid expenses (3,800) Decrease in accounts payable (24,800) Increase in income tax payable 6,800 Increase in accrued liabilities 11,800 Increase in inventory 15,800 $ 204,020 Net cash flow from operating activities Cash flows from investing activities: Sale of land Purchase of equipment Sale of equipment 26,800 (167,800) 33,800 (107,200) Net cash flow used for investing activities Cash flows from financing activities: Repayment of long-term note Payment of cash dividends 10 000 (19,000) (198,620) Net cash flow from financing activities Net decrease in cash and short-term investments Cash and short-term investments, beginning of year Cash and short-term investments, end of year (217,620) (120,800) 18,800 (102,000) $