Statement of Cash Flows $($Indirect Method$)$Rainbow Companys income statement and comparative balance sheets follow.RAINBOW COMPANYIncome StatementFor Year Ended December $31,2019$Sales$$750,000$Dividend income$15,000765,000$Cost of goods sold$$440,000$Wages and other operating expenses$130,000$Depreciation expense$39,000$Patent amortization expense$7,000$Interest expense$13,000$Income tax expense$44,000$Loss on sale of equipment$5,000$Gain on sale of investments$(10,000)668,000$Net income$$97,000$RAINBOW COMPANYBalance SheetDec. $31,$Dec. $31,20192018$AssetsCash and cash equivalents$$19,000$$$25,000$Accounts receivable$40,00030,000$Inventory$103,00077,000$Prepaid expenses$10,0006,000$InvestmentsAvailable$-$for$-$sale$057,000$Land$190,000100,000$Buildings$445,000350,000$Accumulated depreciationBuildings$(91,000)(75,000)$Equipment$179,000225,000$Accumulated depreciationEquipment$(42,000)(46,000)$Patents$50,00032,000$Total assets$$903,000$$$781,000$Liabilities and Stockholders EquityAccounts payable$$20,000$$$16,000$Interest payable$6,0005,000$Income tax payable$8,00010,000$Bonds payable$155,000125,000$Preferred stock $($$$100$ par value$)100,00075,000$Common stock $($$$5$ par value$)379,000364,000$Paid$-$in capital in excess of par valueCommon$133,000124,000$Retained earnings$102,00055,000$AOCI $($unrealized gain on investments$)07,000$Total liabilities and equity$$903,000$$$781,000$During $2019,$ the following transactions and events occurred in addition to the companys usual business activities.$(1)$ Sold AFS investments costing $$50,000$ for $$60,000$ cash. Unrealized gains totaling $$7,000$ related to these investments had been recorded in earlier years.$(2)$ Purchased land for cash.$(3)$ Capitalized an expenditure made to improve the building.$(4)$ Sold equipment for $$14,000$ cash that originally cost $$46,000$ and had $$27,000$ accumulated depreciation.$(5)$ Issued bonds payable at face value for cash.$(6)$ Acquired a patent with a fair value of $$25,000$ by issuing $250$ shares of preferred stock at par value.$(7)$ Declared and paid a $$50,000$ cash dividend.$(8)$ Issued $3,000$ shares of common stock for cash at $$8$ per share.$(9)$ Recorded depreciation of $$16,000$ on buildings and $$23,000$ on equipment.$\backslash$table$[[$Net Income,,$$,0x$