The net changes in the balance sheet accounts of KMD, Inc. for the year 2018 are shown below:

Account Debit Credit

Cash $ 130,000

Accounts receivable $ 14,000

Allowance for doubtful accounts 4,000

Inventory 80,000

Prepaid expenses 10,000

Held-to-Maturity Securities 100,000

Available-for-Sale Securities 300,000

Equipment 700,000

Accumulated depreciation:

Equipment 0 0

Goodwill 10,000

Accounts payable 105,000

Notes payable 325,000

Common stock 100,000

Additional paid-in capitalcommon 120,000

Retained earnings _________ 450,000

$1,224,000 $1,224,000

Additional information:

1. Net income for 2018 was $690,000

2. cash dividends declared/paid $240,000

3. Equipment costing $400,000 with a book value of $150,000 was sold for $150,000

4. Held-to-Maturity (HTM) stock sold for $135,000. There were no other HTM transactions

5. 10,000 Shares of Common Stock were issued for $22/share.

Instructions

Prepare a statement of cash flows (indirect method). Ignore tax effects. Use the format provided on next page. Please attach your supporting calculations or spreadsheets.