M. Lieberthal Inc. Income Statement For years ended December 31, 2017 and 2018 Sales {all on credit) Cost of goods sold Gross margin Depreciation expense Other operating expenses Total operating expenses Operating income Other income {expenses} Interest expense Gain on sale of investments Loss on sale of plant assets Total other income {expenses} Income before income taxes Income taxes expense Net income 2018 2017 $711,000 $675,000 {311%} (304.0001 {net} 340,000 371,000 30,000 53,000 EM M 191,000 100,000 m {5,100} {3,800} 7,000 4,900 {5m} {5m {10,300} {3,900} 140,700 107,100 mm} 1m $102,090 mg M. Lieberthal Inc. Statement of Retained Earnings For the year ended December 31, 2018 Pet. earnings, Jan. 1 Add: net income Deduct: Dividends Increase in retained earnings Ret. earnings, Dec. 31 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 2018 2017 $26,000 $0 102,690 130,970 {02,000} {104,970} 40,090 20,000 $66,690 $26,000 22,000 22,000 4.07 5.95 $2.82 3.77 3L6 $4_2 M. Lieberthal Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change Current assets: Cash $75,900 $35,700 $40,200 Accounts receivable 46,000 38,000 8,000 Inventory 50,000 48,000 2,000 Prepaid expenses 1,900 4,200 -2,300 Other current assets 2,690 4_,100 -1,410 Total current assets 176,490 130,000 46,490 Long-term Investments 89,000 62,000 27,000 Plant assets 314,000 263,000 51,000 3955: a?ct'm\"'ated {80,400} {53,000} 27,400 eprecratlon Total plant assets 233,600 210,000 23,600 Total assets 499,090 402,000 97,090 Current liabilities: Accounts payable $31,300 $32,000 $-700 Accrued liabilities 3,600 3,000 600 Income taxes payable 3,500 13,000 -9,500 Total current liabilities 38,400 48,000 -9,600 Long term liabilities: Notes Payable 256,000 190,000 66,000 Total liabilities 294,400 238,000 56,400 Stockholders' equity Common stock, $5 par 110,000 110,000 0 value Additional paid-in capital 28,000 28,000 0 Retained earnings 66,690 26,000 40,690 Total stockholders' equity 204,690 164,000 40,690 Total liabilities and $499,090 $402,000 $97,090 stockholders' equity Cash Horiz Horiz Vertic Vertic Flows Analysis Analysis Analysis Analysis Ratios Requirement Prepare the cash flows from operations section of M. Lieberthal Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. M. Lieberthal Inc. Cash Flows from Operating Activities-Indirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: