Comparative financial statements for Thomas Company follow:

Thomas Company

Balance Sheets

December 31, 2018 and 2019

Assets 2018 2019

Current assets:

Cash $18,000 $15,000

Accounts receivable 25,000 22,000

Inventory 22,000 20,000

Prepaid expenses 10,000 14,000

Total current assets 75,000 71,000

Long-term assets 25,000 7,000

Property, plant, and equipment 80,000 77,000

Less: Accumulated depreciation (64,000) (61,000)

Net property, plant, and equipment 16,000 16,000

Total assets $116,000 $94,000

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $8,000 $6,000

Accrued liabilities 15,000 6,400

Total current liabilities 23,000 12,400

Bonds payable 18,000 12,000

Deferred tax liability 15,000 4,000

Total liabilities 56,000 28,400

Stockholders' equity:

Common stock 20,000 30,000

Retained earnings 40,000 35,600

Total stockholders' equity 60,000 65,600

Total liabilities and stockholders' equity $116,000 $94,000

Thomas Company

Income Statement

For the year ended December 31, 2019

Sales $70,000

Cost of goods sold 40,000

Gross margin 30,000

Depreciation expense 5,000

Other operating expenses 15,000

Operating income 10,000

Loss on sale of equipment 4,000

Income before taxes 6,000

Income tax expense 2,400

Net income $3,600

Additional data on activities during 2019 are as follows:

• During 2019, Thomas Company sold used equipment for $3,000 that had cost $15,000 with accumulated depreciation of $8,000.
• New equipment was purchased for $12,000 cash.
• Cash dividends totaling $8,000 were paid.
• Long-term investments that had cost $18,000 when purchased were sold for $18,000.
• Common stock was issued for $10,000.

Prepare the cash flow statement for Thomas Company using the indirect method