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Question 3 Thunder Mountain Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year

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Question 3 Thunder Mountain Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2019. Thunder Mountain Company Balance Sheet December 31, 2019 Cash Accounts receivable Inventory Property, Plant & Equipment (net) Total assets 2019 $ 42,000 36,000 43,000 77,500 $198,500 2018 $ 22,000 25,000 25,000 70,000 $142,000 Change $ 20,000 11,000 18,000 7,500 $56,500 Accounts payable Accrued liabilities Long-term notes payable Total liabilities $3,000 4,500 45,000 $ 52,500 $6,000 1,000 55,000 $ 62,000 $ (3,000) 3,500 (10,000) $ 19,500) Common shares Retained earnings Total equity $ 25,000 121,000 $ 146,000 $ 15,000 65,000 $80,000 $ 10,000 56,000 $ 66,000 Total liabilities and equity $ 198,500 $142.000 $ 56,500 Question 3 (continued) Thunder Mountain Company Income Statement For the Year Ended December 31, 2019 $ 260,000 2,500 5,500 $ 268,000 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 $ 105,000 45,000 18,000 23,000 1,000 5,000 197,000 $ 71,000 Thunder Mountain Company Statement of Retained Earnings For the Year Ended December 31, 2019 Retained earnings, January 1, 2019 Net income Dividends Retained earnings, December 31, 2019 $ 65,000 71,000 (15,000) $ 121,000 . Additional information provided: Equipment costing $45,000 was purchased for cash. Equipment with a net asset value of $19,500 was sold for $25,000 During 2019, the company repaid $60,000 of long-term notes payable. During 2019, the company borrowed $50,000 on a new note payable During 2019, the company sold common shares for $10,000 The company traded common shares for a building valued at $135,000 . . . Prepare a statement of cash flows in good form assuming.that Thunder Mountain Company uses the indirect method including any noncash investing and financing activities

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