Comparative Balance Sheet. VIRTUAL CO. Comparative Balance Sheet December 31 2018 2017 Change increase/ (decrease) $ 66,700 55,400 2,400 95,000 356,000 (65,700) $509,800 $ 83,250 54,220 3,600 75,000 290,000 (36,700) $469,370 $(16,550) 1,180 (1,200) 20,000 66,000 (29,000) $ 40,430 Assets Cash Accounts Receivable Prepaid Insurance Investments Plant Assets Accumulated Depreciation Total Assets Liabilities and Equity Liabilities: Accounts Payable Notes Payable Total Liabilities Equity: Common Stock Retained Earnings Total Equity Total Liabilities and Equity $ 48,100 160,000 208,100 $ 47,300 185,000 232,300 $ 800 (25,000) (24,200) 130,000 171,700 301,700 $509,800 100,000 137,070 237,070 $469,370 30,000 34,630 64,630 $ 40,430 Income Statement. VIRTUAL CO. Income Statement For the Year Ended December 31, 2018 $433,000 289,000 144,000 $29,000 14,400 57,200 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Depreciation Expense Insurance Expense Other Operating Expenses Total Operating Expenses Operating Income Other Revenue and (Expenses): Gain on Sale of Land Total Other Revenue and Expenses Income Before Income Tax Income Tax Expense Net Income 100,600 43,400 17,500 17,500 60,900 18,270 $ 42,630 Additional Information The following additional information is provided: 1. Investments that originally cost $30,000 were sold for $47,500 cash. 2. Investments were purchased for $50,000 cash. 3. Plant assets were purchased for $66,000 cash. 4. Cash dividends were declared and paid to shareholders in the amount of $8,000. Directions: Prepare the statement of cash flows (indirect method), for the year ended December 31, 2018. Statement of Cash Flows