The information shown below is taken from the accounts of the Vaught Corporation for the year ended December 31, 2018.

Net Income	$200,000
Amortization of intangible asset (Franchise)	12,000
Proceeds from issuance of common stock	103,000
Increase in inventory	18,000
Cash sale of building at a $10,000 gain	85,000
Increase in accounts payable	15,000
Purchase of computer equipment	125,000
Payment of cash dividends	24,000
Depreciation expense	35,000
Increase in accounts receivable	23,000
Payment of mortgage	52,000
Decrease in short-term notes payable	8,000
Sale of land at a $5,000 loss	26,000
Purchase of delivery truck	33,000
Cash at beginning of year	173,000

Requirements:

1. Prepare a statement of cash flows using the indirect method for Vaught Corporation for the year ended December 31, 2018.
2. Explain what the statement of cash flows tells you about Vaught Corporation.