Problem 12-18B Using financial statements to prepare a statement of cash flowsindirect method The following financial statements were drawn from the records of Culinary Products Co.: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and stockholders' equity Accounts payable inventory) Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity $24,200 2,000 6,400 19,000 (9,000) 18,400 $ 61,000 $ 2,800 1,200 6,000 42,000 (17,400) 10,400 $45,000 $ 2,600 2,800 22,000 33,600 $ 61,000 $ 4,200 6,400 10,000 24,400 $45,000 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 35,700 Cost of goods sold (14,150 Gross margin 21,550 Depreciation expense (3,600 Operating income 17,950 Gain on sale of equipment 500 Loss on disposal of land (50) Net income $ 18,400 Additional Data Page 692 1. During Year 2, the company sold equipment for $18,500; it had originally cost $30,000. Accumulated depreciation on this equipment was $12,000 at the time of the sale. Also, the company purchased equipment for $7,000 cash. 2. The company sold land that had cost $4,000. This land was sold for $3.950, resulting in the recognition of a $50 loss. Also, common stock was issued in exchange for title to land that was valued at $12,000 at the time of exchange. 3. Paid dividends of $9,200. Required Prepare a statement of cash flows using the indirect method