income statement for Demgo Inc. are presented below. balance sheet and income Chapter 13 The balance Demgo Inc. Balance Sheet As at December 31 2019 2018 Assets Cash Accounts Receivable Merchandise Inventory Total Current Assets Land Machinery Accumulated Depreciation Total Assets $20,140 17,000 21,000 58,140 110,000 100,000 140,500) $227640 $21,000 19,000 15,000 55,000 60,000 140,000 (60,000) $195.000 $29,000 Liabilities Current Liabilities Accounts Payable Taxes Payable Total Current Liabilities Bonds Payable Total Liabilities 22,000 51,000 70,000 121,000 $25,000 22,000 47,000 65,000 112,000 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 85,000 21,640 106,640 70,000 13,000 83,000 $227,640 $195,000 Total Liabilities and Stockholders' Equity Demgo Inc. Income Statement For the Year Ended December 31, 2019 $130,000 72.000 Sales 58,000 Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Other Operating Expenses Total Operating Expenses Income from Operations Other Income and Expenses Interest Expense 20,500 9950 30,450 27,550 (4,050) 1700 25,200 7,560 $17.640 Gain on Sale of Machinery Income before Income Tax Expense Income Tax Expense Net Income (Loss) Notes: There was no sale of land. Machinery was purchased for an amount of $80,000. The company did not repay any bonds principal during the year. The company declared and paid dividends during the year. Required a) Prepare the statement of cash flows for December 31, 2019 using the indirect method