Managerial Accounting Corporation (MAC) provides accounting consulting advice to corporate customers. A condensed income statement for the year ended December 31, 2018, appears below:

Service revenue	$	900,000
Operating expenses		700,000
Income before income taxes		200,000
Income tax expense		80,000
Net income	$	120,000

The following balance sheet information also is available:

	12/31/18			12/31/17
Cash	$	275,000		$	70,000
Accounts receivable		120,000			100,000
Accounts payable (operating expenses)		70,000			60,000
Income taxes payable		10,000			15,000

In addition, the following transactions took place during the year:

1. Common stock was issued for $100,000 in cash.
2. Long-term investments were sold for $50,000 in cash. The original cost of the investments also was $50,000.
3. $80,000 in cash dividends was paid to shareholders.
4. The company has no outstanding debt, other than those payables listed above.
5. Operating expenses include $30,000 in depreciation expense.

Required: 1. Prepare a statement of cash flows for 2018 for MAC using the indirect method for reporting operating cash flows.