Assets Cash 2004 $31.000 18,000 27,000 80,000 (30,000) $126,000 2003 $ 20,000 14,000 20,000 78,000 (24,000) $108,000 Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable $ 29,000 Common stock. Retained earnings Total Sales Cost of goods sold Gross profit $ 15,000 7,000 8,000 27,000 18,000 33,000 14.000 45,000 38,000 $126,000 $108,000 NEWMAN COMPANY Income Statement For the Year Ended December 31, 2004 Selling expenses Administrative expenses Income from operations Interest expense $242,000 175,000 67,000 $18,000 6,000 24,000 43,000 3,000 40,000 6,000 Income before income taxes Income tax expense Net income Instructions (a) Prepare a statement of cash flows using the indirect method. $ 34,000