Question Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2019. (26 marks) Avatar Company Balance Sheet December 31, 2019 2019 2018 Change Cash $ 21,000$ 18,000$ 3.000 Accounts receivable 31.000 35,000 (4.000 Inventory 53.000 25,000 28.000 Property. Plant & Equipment (net) 120.000 90,000 30.000 Total assets 225.000 16.00 52.00 Accounts payable Accrued liabilities Long-term moles payable Total liabilities 4.000$ 6,000 $2,000 2.000 1.000 1,000 84.000 90.000 16.000 90.000 S 97.000 $17.000 Common shares Retained earnings Total equity 42.000 $ 17,000 $25.00 93000 $400 39,00 $ 135,000 $71.00 64.00 Total liabilities and equity 225.000 SI 000 $57.00 Question 1 (con't) Avatar Company Income Statement For the Year Ended December 31, 2019 Revenues and gains Sales revenue $ 240,000 Interest revenue 1.000 Gain on sale of plant assets 4,000 Total revenues $ 245.000 Expenses: Cost of goods sold $ 110,000 Salary expense 45.000 Depreciation expense 12.000 Other operating expenses Interest expense 1.000 Income tax expense 5.000 Total expenses 195.000 Net income S 49.000 23.000 Avatar Company Statement of Retained Earnings For the Year Ended December 31, 2019 Retained earnings, January 1, 2019 $ 54,000 Net income 49,000 Dividends (10,000 Retained earnings, December 31, 2019 S 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 noncash investing and financing activities