You are the controller for the Lynbrook Company. Your staff has prepared a balance sheet and income statement for the year ended December 31, 2018 (see following page). They have also provided you with the following information about Lynbrooks activities during 2018:

Lynbrook declared and paid a cash dividend this year.

Bonds with a principal balance of $380,000 were repaid during this year.

Equipment was sold during this year for $70,000. The equipment had cost $130,000 and had $40,000 in accumulated depreciation on the date of sale.

Long-term investments were sold during the year for $110,000. These investments had cost $50,000 when purchased several years ago.

The subsidiaries did not repay any outstanding loans during the year.

Lynbrook did not repurchase any of its own stock during the year.

Required:

Prepare a statement of cash flows (operating, investing, & financing) for the year ended December 31, 2018. Use the indirect method to prepare the operating activities section of the cash flows statement.

		Lynbrook Company
		Balance Sheet
		December 31,
Assets			2018	2017
	Current Assets:
		Cash and Cash Equivalents	71,000	50,000
		Accounts Receivable	590,000	610,000
		Inventory	608,000	420,000
		Prepaid Expenses	10,000	5,000
	Total current assets		1,279,000	1,085,000
	Property, Plant, and equipment		2,370,000	1,800,000
		less: Accumulated Depreciation	615,000	560,000
	Net property, plant, and equipment		1,755,000	1,240,000
	Long-term investments		80,000	130,000
	Loans to subsidiaries		120,000	70,000
	Total assets		3,234,000	2,525,000
Liabilities and Stockholders' Equity
	Current liabilities
		Accounts payable	870,000	570,000
		Accrued liabilities	25,000	42,000
		Income taxes payable	133,000	118,000
	Total current liabilities		1,028,000	730,000
		Bonds payable	620,000	400,000
	Total liabilities		1,648,000	1,130,000
	Stockholders' Equity
		Common stock	1,090,000	1,000,000
		Retained earnings	496,000	395,000
	Total stockholders' equity		1,586,000	1,395,000
Total Liabilities and Stockholders' Equity			3,234,000	2,525,000
		Lynbrook Company
		Income Statement
	For the year ended December 31, 2018
		Sales		3,000,000
		Cost of goods sold		1,860,000
		Gross margin		1,140,000
		Selling and administrative expenses		930,000
		Net operating income		210,000
		Non operating items:
		Gain on sales of investments	60,000
		Loss on sale of equipment	( 20, 000)	40,000
		Income before taxes		250,000
		Income taxes		80,000
		Net income		170,000