Use the following excerpts from Zowleski Company's financial information. Cash Accounts Receivable Merchandise Inventory Plant Assets Accumulated Depreciation Total Assets Dec. 31, 2018 $99,700 Dec. 31, 2017 $90,000 21,900 22,700 138,000 131,000 185,000 150,000 (25,000) (21,000) $419,600 $372,700 Accounts Payable Notes Payable $19,000 $21,000 140,500 120,000 Common Stock 20,000 20,000 Retained Earnings 240,100 211,700 Total Liabilities and Equity $419,600 $372,700 Additional Information: Net Income for 2018 $28,400 Depreciation Expense for 2018 (Accumulated Depreciation Increase) 4,000 Plant Assets Purchased (Plant Assets Increase), Finance by Note 35,000 Plant Assets Purchased (Plant Assets Increase), Finance by Note 35,000 Notes Payable Increased by Amount of Plant Assets Purchase 35,000 Notes Payable Decreased by Amount of Principal Note Payments 14,500 Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Zowleski Company Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Cash Flow from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities: Depreciation Expense Accounts Receivable Change Merchandise Inventory Change Accounts Payable Change 4,000 800 7,000 X Net Cash Flow from Operating Activities 28,400 2,000 X x 18,600 X Cash Flow from Financing Activities: Payment of Notes Payable (principal) 14,500 X Net Cash Flow from Financing Activities Total Cash Flow Increase Cash Balance, December 31, 2017 Cash Balance, December 31, 2018 Noncash Investing and Financing Activities: Plant Assets Acquired in Exchange for Notes Payable 14,500 X 9,700 90,000 99,700 35,000