36. The following comparative balance sheets and income statement are available for MEMPHIS Co. a. Prepare statement of cash flows for 2019 using the indirect method b. Analyze the statement of cash flow. MEMPHIS CORPORATION Income Statement For the year ended December 31, 2019 Sales 179,4000 Cost of goods sold 108,8000 Loss on sale of equipment 3,500 Depreciation expense 53,500 Other operating expenses 500,000 Income tax expenses 22,000 Net income 127,000 2018 ($) 137,000 74,000 525,000 240,000 102,000 874,000 MEMPHIS CORPORATION Balance Sheet December 31, 2019 Assets 2019 ($) Cash 165,000 Account receivable 82,000 Inventories 620,000 Plant and Equipment 345,000 Accumulated depreciation - equipment 159,000 Total Assets 1,053,000 Liabilities: Account payable 160,000 Salaries payable 22,000 Total liabilities 182,000 Equity Capital Stock 588,000 Additional paid in capital 201,000 Retained earning 82,000 Total equity 871,000 Total liability & Shareholder's equity 1,053,000 96,000 19,000 115,000 560,000 159,000 40,000 759,000 874,000