The following are the financial statements of Metlock, Inc.. Metlock, Inc. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment (30,000) (23,200) 2019 2018 $37,000 $20,500 19,500 20,900 77,900 32,900 30,400 59,900 $130,200 $115,600 Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,100 $16,300 8,300 32,900 13,700 44,400 $130,200 $115,600 7,500 27,500 18,500 48,600 Total Metlock, Inc. Income Statement For the Year Ended December 31, 2019 $241,500 176,000 65,500 23,200 42,300 2,600 39,700 8,500 $31,200 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Additional data: Dividends declared and paid were $27,000 During the year, equipment was sold for $9,700 cash. This equipment cost $18,000 originally and had a book value of $9,700 at the time of sale. All depreciation expense, $15,100, is in the operating expenses. All sales and purchases are on account. 1. 2. 3. 4. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Metlock, Inc. Statement of Cash Flows For the Year Ended December 31,2019 Cash Flows from Operating Activities 31200 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 15100 Increase in Accounts Payable -13400 Increase in Inventory 9500 Increase in Accounts Payable 11800 Decrease in Income Taxes Payable 800 34400 Net Cash Provided by Operating Activities Cash Flows from Financing Activities 4800