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 Accounts Receivable Inventory Property and Equipment, Net $18,000 9,000 21,600 36,000 $84,600 Liabilities and Stockholders' Equity $18,000 9,000 36,000 21,600 84,600 Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings Extra Surplus Company Income Statement For the Year Ended December 31, 2018 Sales Cost of Goods Sold Salaries and Wage Expense Interest Expense Other Expenses Net Income $33,800 7,800 7,800 2,600 1,300 $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: a. Prepare a balance sheet at December 31, 2018 b. Prepare the statement of cash flows using the direct method