The balance sheet and income statement for Zooyo Appliance are presented below.

Zooyo Appliance
Balance Sheet
As at December 31
Assets	2018	2017
Currents Assets
Cash	$37,580	$15,000
Accounts Receivable	17,000	16,000
Merchandise Inventory	21,000	27,000
Total Current Assets	75,580	58,000
Land	110,000	80,000
Equipment	130,000	160,000
Accumulated Depreciation	(26,500)	(30,000)
Total Assets	$289,080	$268,000
Liabilities
Current Labilities
Accounts Payable	$29,000	$35,000
Taxes Payable	18,000	18,000
Total Current Liabilities	47,000	53,000
Bonds payable	80,000	65,000
Total Liabilities	127,000	118,000
Stockholders Equity
Common Stock	75,000	70,000
Retained Earnings	87,080	80,000
Total Stockholders Equity	162,080	150,000
Total Liabilities and Stockholders Equity	$289,080	$268,000

Zooyo Appliance
Income Statement
For the Year Ended December 31, 2018
Sales	$142,000
Costs of Goods Sold	92,000
Gross Profit	50,000
Operating Expenses
Depreciation Expenses	4,500
Other Operating Expenses	13,550
Total Operating Expenses	18,050
Income for Operations	31,950
Other Income and Expenses
Interest Expense	(4,350)
Loss on Sale of Equipment	(3,200)
Income before Income Tax Expense	24,400
Income Tax Expense	7,320
Net Income (loss)	$17,080

Notes: There was no sale of land or purchase of equipment during the year. The company did not repay any bonds principal during the year. The company declared and paid dividends during the year.

a) Prepare the statement of cash flows for December 31, 2018, using the indirect method.