Table 17-4 Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following Information for the year 2014 Avatar Company Balance Sheet December 31, 2014 Cash Accounts receivable Inventory Property. Plant & Equipment (net) Total assets 2014 $ 21,000 31,000 53,000 120,000 $ 225.000 2013 $ 18,000 35,000 25,000 90.000 $ 168,000 Change $3,000 (4,000 28,000 30.000 $ 57,000 I Accounts payable Accrued liabilities Long-term notes payable Total liabilities $ 4,000 2.000 84,000 $90,000 $ 6,000 1.000 90.000 $97.000 $ (2.000 1,000 (6.000) $17.000 Common shares Retained earnings Total equity $ 42.000 93,000 $ 135 000 $ 17 000 54 000 $71000 $ 25,000 39,000 $ 64,000 Total liabilities and equity $225.000 $168.000 $ 57.000 Avatar Company Income Statement For the Year Ended December 31, 2014 $ 240,000 1,000 4,000 $ 245,000 Revenues and gains: Sales revenue Interest revenue Gain on sale of plant assets Total revenues Expenses: Cost of goods sold Salary expense Amortization expense Other operating expenses Interest expense Income tax expense Total expenses Net income $ 110,000 45,000 12,000 23,000 1,000 5000 196.000 $ 49,000 I Avatar Company Statement of Retained Earnings For the Year Ended December 31, 2014 Retained earnings, January 1, 2014 Net income Dividends Retained earnings, December 31, 2014 $ 54,000 49,000 (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 Depreciation expense of $12,000 was recorded during the year During 2014, the company repaid $40,000 of long-term notes payable During 2014, the company borrowed $34.000 on a new note payable There were no stock retirements during the year There were no sales of treasury stock during the year 22) Refer to Table 17.4. Prepare a statement of cash flows in good form assuming that Avatar Company uses the indirect method Act