Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2022. Avatar Company Balance Sheet December 31, 2022 2022 2021 Change Cash $21,000 $18,000 $3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 Property, Plant & Equipment (net) 120,000 90,000 30,000 Total assets $225,000 $168,000 $57,000 Accounts payable $4,000 $6,000 $(2,000) Accrued liabilities 2,000 1,000 1,000 Long-term notes payable 84,000 90,000 (6,000) Total liabilities $90,000 $97,000 $(7,000) Common shares $42,000 $17,000 $25,000 Retained earnings 93,000 54,000 39,000 Total equity $135,000 $71,000 $64,000 Total liabilities and equity $225,000 $168,000 $57,000 Avatar Company Income Statement For the Year Ended December 31, 2022 Revenues and gains: Sales revenue Interest revenue Gain on sale of plant assets Total revenues $240,000 1,000 4,000 $245,000 Expenses: Cost of goods sold $110,000 Salary expense 45,000 Amortization expense 12,000 Other operating expenses 23,000 Interest expense 1,000 Income tax expense 5,000 Total expenses 196,000 Net income $49,000 Avatar Company Statement of Retained Earnings For the Year Ended December 31, 2022 Retained earnings, January 1, 2022 $54,000 Net income 49,000 Dividends (10,000) Retained earnings, December 31, 2022 $93,000 Additional information provided: Equipment costing $52,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $14,000 Amortization expense of $12,000 was recorded during the year. During 2021, the company repaid $40,000 of long-term notes payable. During 2021, the company borrowed $34,000 on a new note payable There were no stock retirements during the year. There were no sales of treasury stock during the year.