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 $15,000 7,500 18,000 30,000 $70,500 $15,000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings 7,500 30,000 18,000 $78,500 Extra Surplus Company Income Statement For the Year Ended December 31, 2018 Sales $26,000 Cost of Goods Sold 6,000 Salaries and Wage Expense 6,000 For the Year Ended December 31, 2018 Sales $26,000 Cost of Goods Sold 6,000 Salaries and Wage Expense 6,000 Interest Expense 2,000 Other Expenses 1,000 Net Income $11,000 Additional data: lue of $10,000. Sales were $26.000: $16,000 in cash was received from customers. Bought new land for cash, $20,000. Sold other land for its book value of $10,000. Paid $2,000 principal on the long-term note payable and $2,000 in interest. Issued new shares of stock for $20,000 cash. . Cash dividends of $3,000 were declared and paid to stockholders. Paid $11,500 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. be Required A Required B Prepare a balance sheet at December 31, 2018. EXTRA SURPLUS COMPANY Balance Sheet at December 31 2018 Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Cash Flows from Investing Activities: ST Cash Flows from Financing Activities: 1,500 15,000 16,500