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 $121,500 ($13,500)

Accounts receivable 102,000 141,000 (39,000)

Inventory 101,000 60,000 41,000

Marketable securities 4,000 18,000 (14,000)

Prepaid expenses 20,000 36,000 (16,000)

Long-term assets

Plant & equipment (net) 296,000 185,000 111,000

Land 52,000 31,000 21,000

Patent 53,000 53,000 0

Total Assets 736,000 645,500

Current liabilities:

Accounts payable 41,000 34,000 7,000

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

Other accruals 22,400 40,000 (17,600)

Tax payable 2,500 10,500 (8,000)

Note payable 31,250 42,000 (10,750)

Long-term liabilities

Mortgage payable 81,000 59,000 22,000

Bond payable 77,000 132,000 (55,000)

Stockholder's equity

Common stock 350,000 250,000 100,000

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

Retained earnings 92,650 56,000 36,650

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 520,050

Depreciation expense 60,000

*Other operating expenses 192,000

Interest expense 85,000

Tax expense 48,000

Total expense 905,050

Net Income 114,950

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