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	$	12,000
Accounts Receivable		6,000
Inventory		14,400
Property and Equipment, Net		24,000
	$	56,400
Liabilities and Stockholders Equity
Accounts Payable	$	12,000
Notes Payable, Long-Term		6,000
Common Stock		24,000
Retained Earnings		14,400
	$	56,400

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2018
Sales	$	18,200
Cost of Goods Sold		4,200
Salaries and Wage Expense		4,200
Interest Expense		1,400
Other Expenses		700
Net Income	$	7,700

Additional data:

• Sales were $18,200; $11,200 in cash was received from customers.
• Bought new land for cash, $14,000.
• Sold other land for its book value of $7,000.
• Paid $1,400 principal on the long-term note payable and $1,400 in interest.
• Issued new shares of stock for $14,000 cash.
• Cash dividends of $1,800 were declared and paid to stockholders.
• Paid $7,900 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.

Prepare a balance sheet at December 31, 2018.

A. Balance Sheet

EXTRA SURPLUS COMPANY
Balance Sheet at December 31
	2018
	$0
	$0

Prepare the statement of cash flows using the direct method. (Enter any deductions and cash outflows as a negative value.)

Statement of Cash Flows

EXTRA SURPLUS COMPANY
Statement of Cash Flows
Year Ended December 31, 2018
Cash Flows from Operating Activities:
	0
Cash Flows from Investing Activities:
	0
Cash Flows from Financing Activities:
	0
	1,500
	12,000
	$13,500

Thank you so much for your help!!