Use the financial statements below calculate and present, using good form, only the cash flows from Operating Activities using the indirect method for the year ended December 31, 2018.

Evan's Electronics

Income Statement

Year Ended December 31, 2018

($ in thousands)

Revenue$7,000

Cost of Goods Sold3,360

Gross Profit3,640

Operating Expenses:

Depreciation Expense240

Insurance Expense100

Patent Amortization Expense200

Loss on Sale of Plant and Equipment170

Other Operating Expenses1,430

Total Operating Expenses2,140

Income From Operations1,500

Interest Expense200

Income Before Taxes1,300

Income Tax Expense 400

Net Income$900

Evan's Electronics

Balance Sheet

December 31, 2018 and 2017

($ in thousands) 2018 2017

Assets

Cash $100$ 200

Accounts Receivable 850830

Inventory 500 160

Prepaid Insurance 5020

Total Current Assets 1,500 1,210

Plant and Equipment 2,100 1,800

less: Accumulated Depreciation(840)(600)

Plant and Equipment, net 1,260 1,200

Patent, net 240 440

Total Long Term Liabilities 1,500 1,640

Total Assets $3,000$ 2,850

Liabilities and Stockholder's Equity

Accounts Payable $300$ 360

Payables for administrative and other expenses300400

Income Taxes Payable 200 150

Total Current Liabilities 800 910

Note Payable (due 2020) 800 600

Total Liabilities 1,600 1,510

Common Stock 900 800

Retained Earnings 500 540

Total Equity 1,400 1,340

Total Liabilities and Stockholders' Equity$3,000$2,850