III. (30 points) The following include your company's income statement, and the statement of retained earnings for year 2019. Your company's balance sheets, at the end of years 2018 and 2019, are also provided. There were neither non-cash investing nor non-cash financing activities in 2019. Income Statement Statement of Retained Earnings (for year 2019) (for year 2019) Revenues and Gains: Beginning retained earnings $ 38,500 Sales revenue $ 210,000 (+) Net income 33,500 Gain on sale of land 3,000 (-) Dividends (paid in cash) 8,000 Expenses: Ending retained earnings $ 64,000 Cost of goods sold 100,000 Salary expense 45,000 Depreciation expenses 5,000 Other operating expenses 17,000 Interest expense 3,000 Income tax expense 9,500 Net income $ 33,500 12/31/19 12/31/19 12/31/18 Assets Current Assets: Cash Accounts receivable Inventory Prepaid insurance Noncurrent Assets: Equipment (-) Accumulated depreciation Land $ 6,000 30,000 65,000 1,000 Balance Sheet 12/31/18 Liabilities Current Liabilities: $ 8,800 Accounts payable 36,000 Unearned revenue 20,000 Salary payable 2,200 Interest payable Long-term Liabilities: 100,000 Notes payable (10,000) Total Liabilities $ 5,000 70,000 1,000 2,000 $ 12,000 6,000 500 5,000 100,000 (15,000) 45,000 100,000 $ 123,000 $ 123,500 15,000 20,000 Owners' Equity Common stock Retained earnings Total L. & OE. 15,000 15,000 64,000 38,500 $ 202,000 $ 177,000 Total Assets $ 202,000 $177,000 Required 1: (28 points) Use indirect method and prepare your company's statement of cash flows for year 2019, in a good format. Required 2: (2 points) Identify and discuss the main reason(s) for the decrease in your company's cash in 2019