The comparative unclassified statement of financial position for Wildhorse Ltd. follows: WILDHORSE LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $50,000 $28,000 Accounts receivable 89,000 66,500 Inventory 181,000 205,000 Long-term investments 78,000 110,000 Equipment 260,000 158,000 Accumulated depreciation (70,000 ) (39,000 ) Total assets $588,000 $528,500 Liabilities and Shareholders Equity Accounts payable $39,000 $ 45,000 Bank loan payable 115,000 179,500 Common shares 217,000 172,000 Retained earnings 217,000 132,000 Total liabilities and shareholders equity $588,000 $528,500 Additional information: 1. Net income was $113,400. 2. Sales were $972,000. 3. Cost of goods sold was $750,000. 4. Operating expenses were $42,000, exclusive of depreciation expense. 5. Depreciation expense was $31,000. 6. Interest expense was $19,000. 7. Income tax expense was $22,000. 8. Long-term investments were sold at a gain of $5,400. 9. No equipment was sold during the year. 10. $64,500 of the bank loan was repaid during the year. 11. Common shares were issued for $45,000. Prepare a statement of cash flows using the indirect method.