P 14-8 LO4 Statement of Cash Flows (Indirect Method) Jessie Company's comparative balance sheets for 2017 and 2018 are provided. If the item has alternative classification, do not classify it as operating cash flows. LO5 Jessie Company Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 . Assets Cash and cash equivalents Accounts receivable (net) Inventory Equipment Accumulated depreciation-equipment Total assets. $ 34,000 66,500 102,000 57.000 (21,000) $238,500 $ 12,000 53,000 117,000 32,000 (12,000) $202,000 Liabilities and Equity Accounts payable Income tax payable Long-term notes payable Capital stock. Retained earnings Total liabilities and equity $ 51,700 4,800 72,000 62,000 48,000 $238,500 $ 46,300 3,700 52,000 62,000 38,000 $202,000 The following additional information is available: a. Net income for the year 2018 (as reported on the statement of comprehensive income) was $52,000, and the income tax expense was $2,500. b. Dividends of $42,000 were declared and paid. Equipment that cost $8,000 and had a carrying amount of $1,000 was sold during the year for $2,500. C. 694 Part 4 Other Dimensions of Financial Reporting Required: Based on the information provided, prepare a statement of cash flows for Jessie Company for the ended December 31, 2018. Use the indirect method to report cash flows year