Based on the following information, prepare the statement of cash flows using the indirect method.

New Guy Company

Balance Sheet

2019 2018 Change

Current assets:

Cash $108,000 $131,500 ($23,500)

Accounts receivable 102,000 71,000 31,000

Inventory 101,000 70,000 31,000

Marketable securities 4,000 28,000 (24,000)

Prepaid expenses 20,000 26,000 (6,000)

Long-term assets

Plant & equipment (net) 296,000 175,000 121,000

Land 52,000 91,000 (39,000)

Patent 53,000 53,000 0

Total Assets 736,000 645,500

Current liabilities:

Accounts payable 41,000 69,000 (28,000)

Interest payable 13,200 22,000 (8,800)

Other accruals 22,400 14,000 8,400

Tax payable 2,500 12,500 (10,000)

Note payable 31,250 12,000 19,250

Long-term liabilities

Mortgage payable 81,000 59,000 22,000

Bond payable 77,000 160,000 (83,000)

Stockholder's equity

Common stock 350,000 250,000 100,000

Paid-in-capital 25,000 0 25,000

Retained earnings 92,650 47,000 45,650

Total Liabilities and Equity 736,000 645,500

Income Statement

For the Year Ended December 31, 2019

Revenues:

Sales (All on credit) $1,020,000

Expenses:

Cost of goods sold 540,050

Depreciation expense 80,000

*Other operating expenses 182,000

Interest expense 75,000

Tax expense 38,000

Total expense 915,050

Net Income 104,950

*(Includes $15,000 of amortization expense for patent and $20,000 of a lease expense, which is a fixed charge)