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 $ 20,000 10,000 24,000 40,000 $94,000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings $ 20,000 10,000 40,000 24,000 $ 94,000 Extra Surplus Company Income Statement For the Year Ended December 31, 2018 Sales $39,000 Cost of Goods Sold 9,000 Salaries and Wage Expense 9,000 Interest Expense 3,000 Other Expenses 1,500 Net Income $16,500 Additional data: Sales were $39,000; $24,000 in cash was received from customers. Bought new land for cash, $30,000. Sold other land for its book value of $15,000. Paid $3,000 principal on the long-term note payable and $3,000 in interest. Issued new shares of stock for $30,000 cash. Cash dividends of $5,000 were declared and paid to stockholders. Paid $17,500 on accounts payable. No inventory purchases were made; other expenses were incurred on account. All wages were paid in cash. Additional data: Sales were $39,000; $24,000 in cash was received from customers. Bought new land for cash, $30,000. Sold other land for its book value of $15,000. Paid $3,000 principal on the long-term note payable and $3,000 in interest. Issued new shares of stock for $30,000 cash. Cash dividends of $5,000 were declared and paid to stockholders. Paid $17,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a balance sheet at December 31, 2018. EXTRA SURPLUS COMPANY Balance Sheet at December 31 2018 Cash Accounts Receivable Inventory Property and Equipment Complete this question by entering your answers in the tabs below. Required A Required B Prepare a balance sheet at December 31, 2018. EXTRA SURPLUS COMPANY Balance Sheet at December 31 2018 Cash Accounts Receivable Inventory Property and Equipment Accounts Payable Notes Payable (long-term) Common Stock Retained Earnings Required A Required B > Required A Required B Prepare the statement of cash flows using the direct method. (Enter any deductions and cash outflows as a negative value.) EXTRA SURPLUS COMPANY Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Cash collected from customers Cash paid for interest Cash paid to employees Cash paid to suppliers of inventory 0 Net cash used in operating activities Cash Flows from Investing Activities: Proceeds from sale of land Purchase of land Net cash used in investing activities Cash Flows from Financing Activities: Payments on long-term debt Payment of cash dividends Proceeds from issuing common stock Net cash provided by financing activities Net increase in cash during the year Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period 1,500 20,000 21,500