Problem: Statement of Cash Flows The comparative balance sheet of Custom Mustangs Co. for 2018 and the preceding year ended December 31, 2017, appears below in condensed form: (20 points) Year 2018 $ 53,000 37,000 108,500 Cash Accounts receivable (net) Inventories Plant Assets Equipment Accumulated depreciation-equipment Year 2017 $ 50,000 48,000 100,000 70,000 450,000 (176.000 $542.000 573,200 (142,000) $629.700 $ 62,500 Accounts payable Bonds payable, due 2018 Common stock, $10 par Retained earnings 405,000 162,200 $629,700 $ 43,800 100,000 340,000 58,200 $542,000 The income statement for the current year is as follows: $1,251,400 965,700 $285,700 $26,000 68,000 94.000 $191,700 Revenue Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Income from operations Other income: Gain on sale of investment Other expense: Interest expense Income before income tax Income tax Net income $ 4,000 6,000 (2.000) $189,700 60,700 $129.000 Additional data for the current year are as follows: (a) (b) (c) (d) (e) Fully depreciated equipment costing $60,000 was scrapped with no salvage, and new equipment was purchased for $183,200. Bonds payable for $100,000 were retired by payment at their face amount. Plant assets were sold for $74,000. 5,000 shares of common stock were issued at $13 for cash. Cash dividends declared and paid. Prepare a statement of cash flows (in proper format) using the indirect method