Question 3 Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2019. Avatar Company Balance Sheet December 31, 2019 Cash Accounts receivable L Inventory Property, Plant & Equipment (net) Total assets 2019 $ 21,000 3 1,000 53,000 120,00d 5225.000 2018 $14,000 35,00d 25,000 9 0.000 $168.000 Change $ 3,000 [4,000 28,000 30,000 57.000 Accounts payable Accrued liabilities Long-term notes payable Total liabilities $ 4,000 2,000 34,00d $ 90,000 $ 6,000 1,000 _90,000 S 97 cod 5 12,000 1,000 16.0001 517.0001 Common shares Retained earnings Total equity 5 42,000 93.00 $ 135.000 51700d 54.000 $71.000 5 25,000 39.000 554 000 Total liabilities and equity $225.000 3153226 357000 6-7 of 13 Question 3 /con't) Avatar Company Income Statement For the Year Ended December 31, 2019 $ 240,000 1,000 4,000 Revenues and gains: Sales revenue Interest revenue Gain on sale of plant assets Total revenues Expenses Cost of goods sold Salary expense Depreciation expense Other operating expenses Interest expense Income tax expense Total expenses Net income $ 110,000 45,000 12,000 23,000 1,000 5.000 196.000 S 49.000 Avatar Company Statement of Retained Earnings For the Year Ended December 31, 2019 Protected View Enable Editing $ 54,000 Retained earnings, January 1, 2019 Net income Dividends Retained earnings, December 31, 2019 (10.000 93,000 Additional information provided: Equipment costing $52,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $14,000 . During 2019, the company repaid $40,000 of long-term notes payable. During 2019, the company borrowed $34,000 on a new note payable During 2019, the company sold common shares for $25,000 The company traded common shares for a building valued at $150,000 Prepare a statement of cash flows in good form assuming that Avatar Company uses the indirect method including any