The comparative statements of financial position of Mikos Inc. as at December 31, 2017 and 2018, and its statement of earnings for the year ended December 31, 2018, are presented below: MIKOS INC. Comparative Statements of Financial Position December 31 2018 2017 Assets Cash $ 9,200 $ 17,200 Short-term investments 48,400 22,600 Accounts receivable 69,000 26,800 Inventories, at cost 54,400 40,200 Prepaid expenses 4,200 6,400 Land 45,800 71,000 Property, plant, and equipment, net 280,800 180,000 Intangible assets 24,200 28,400 $ 536,000 $392,600 $ Liabilities and Shareholders' Equity Accounts payable Income tax payable Accrued liabilities Long-term notes payable Contributed capital Retained earnings 17,200 $ 40,400 6,400 1,200 10,200 -O- 112,000 154,000 204,000 61,000 186,200 136,000 $ 536,000 $ 392,600 $ 856,000 MIKOS INC. Statement of Earnings For the Year Ended December 31, 2018 Sales Cost of sales Amortization expense intangible assets Depreciation expenseproperty, plant, and equipment Operating expenses Interest expense $ 432,000 4,200 33,200 223,000 12,200 704,600 Earnings before income taxes Income tax expense 151,400 45,420 Net earnings $ 105,980 Additional information is as follows: a. Land was sold for cash at its carrying amount. b. The short-term investments will mature in February 2019 i.e. these are cash equivalents). c. Cash dividends were declared and paid in 2018. d. New equipment with a cost of $166,200 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $11,000 were paid in cash, and notes of $31,000 were converted to shares. Required: 1. Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2018 by using the indirect method. When dealing with depreciation and amortization expenses (in the operating section), place them together as a single line item. (Negative answers should be indicated by a minus sign.) MIKOS INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net earnings to net cash provided by operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash and short-term investments, beginning of year Cash and short-term investments, end of year