Use the following financial statements and additional information to prepare a complete statement of cash flows for the year ended December 31, 2018, The cash provided or used by operating activities should be reported using the indirect method. Wescott Company Balance Sheets At December 31 2018 2017 Assets: Cash. Accounts receivable, net Merchandise inventory. Prepaid expenses. Equipment. Accumulated depreciation-Equipment. Total assets. $ 85,600 S 65,200 56,750 144,850 12,680 245,600 (97.600) $427.480 72,850 157,750 6,080 280,600 (80,600) $522.280 ......* Liabilities: S 52,850 $ 45,450 12,240 79,200 S136,890 Accounts payable Income taxes payable Notes payable (long term) Total liabilities Equity: Common stock (S1.00 par) Paid-in capital in excess of par Retained carnings. Total equity Total liabilities and equity 15,240 59.200 S127,290 150,000 200,000 53,000 40,000 100.590 $290,590 S427.480 141.990 S394.990 SS22.280 Wescott Company Income Statement For Year Endod December 31, 2018 $488,000 Sales. S212,540 43,000 106,260 6400 (368,200) Cost of goods sold. Depreciation expense Other operating expenses.. Interest expense. Other gains (losses): Gain on sale of equipment Income before taxes 4.700 124,500 41.100 S 83.400 Income taxes expense Net income. 124,500 41,100 $ 83.400 Income before taxes Income taxes expense Net income Additional Information a. A $20,000 note payable is retired at its carrying value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $120,000 cash. d. Received $29,700 cash for the sale of equipment that had cost $85,000, yielding a gain of $4,700. e. Prepaid expenses relate to Other Expenses on the income statement. f. All purchases and sales of merchandise inventory are on credit