The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below.

Extra Surplus Company
Balance Sheet
December 31, 2017
Assets
Cash	$	18,000
Accounts Receivable		9,000
Inventory		21,600
Property and Equipment, Net		36,000
	$	84,600
Liabilities and Stockholders Equity
Accounts Payable	$	18,000
Notes Payable, Long-Term		9,000
Common Stock		36,000
Retained Earnings		21,600
	$	84,600

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2018
Sales	$	33,800
Cost of Goods Sold		7,800
Salaries and Wage Expense		7,800
Interest Expense		2,600
Other Expenses		1,300
Net Income	$	14,300

Additional data:

• Sales were $33,800; $20,800 in cash was received from customers.
• Bought new land for cash, $26,000.
• Sold other land for its book value of $13,000.
• Paid $2,600 principal on the long-term note payable and $2,600 in interest.
• Issued new shares of stock for $26,000 cash.
• Cash dividends of $4,200 were declared and paid to stockholders.
• Paid $15,100 on accounts payable.
• No inventory purchases were made; other expenses were incurred on account.
• All wages were paid in cash.
• Other expenses were on account.

Required:

1. Prepare a balance sheet at December 31, 2018.
2. Prepare the statement of cash flows using the direct method.