The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Wright Company. Additional information from Wright's accounting records is provided also. 125 WRIGHT COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000 s) 2018 2017 Assets Cash $ 116 $ 95 Accounts receivable 136 140 Short-term investment 47 14 Inventory 137 135 Land 102 Buildings and 695 530 equipment Less: Accumulated (193) (140) depreciation $ 1,040 899 Liabilities Accounts payable $ 40 $ 48 Salaries payable Interest payable 5 Income tax payable 10 Notes payable Bonds payable 296 230 Shareholders' Equity Common stock 390 330 Paid-in capital-excess 165 of par Retained earnings 112 72 $1,040 $ 899 6 Nooino 187 WRIGHT COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues: Sales revenue $580 Expenses: Cost of goods sold $260 Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense 87 480 Net income $100 59 Additional information from the accounting records: a. Land that originally cost $23,000 was sold for $18.000. b. The common stock of Microsoft Corporation was purchased for $33,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $165,000 cash. d. A $33,000 note was paid at maturity on January 1. e. On January 1, 2018, bonds were sold at their $66,000 face value. f. Common stock ($60,000 par) was sold for $82,000. g. Net income was $100,000 and cash dividends of $60,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).) WRIGHT COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in 000s) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For interest For income taxes Net cash flows from operating activities. Cash flows from investing activities: Sale of land Purchase of short-term investment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Repayment of notes payable Sale of bonds payable Sale of common stock Payment of cash dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 $