Question

The comparative statements of financial position of Mikos Inc. as at December 31, 2017 and 2018, and its statement of earnings for the year ended December 31, 2018, are presented below:

MIKOS INC.
Comparative Statements of Financial Position
December 31
	2018			2017
Assets
Cash	$	10,600		$	18,600
Short-term investments		72,200			40,800
Accounts receivable		76,000			32,400
Inventories, at cost		57,200			41,600
Prepaid expenses		5,600			9,200
Land		51,400			78,000
Property, plant, and equipment, net		286,400			187,000
Intangible assets		25,600			31,200
	$	585,000		$	438,800
Liabilities and Shareholders’ Equity
Accounts payable	$	18,600		$	43,200
Income tax payable		9,200			2,600
Accrued liabilities		11,600			-0-
Long-term notes payable		126,000			182,000
Contributed capital		232,000			68,000
Retained earnings		187,600			143,000
	$	585,000		$	438,800

MIKOS INC.
Statement of Earnings
For the Year Ended December 31, 2018
Sales				$	898,000
Cost of sales	$	446,000
Amortization expense—intangible assets		5,600
Depreciation expense—property, plant, and equipment		34,600
Operating expenses		237,000
Interest expense		13,600			736,800
Earnings before income taxes					161,200
Income tax expense					48,360
Net earnings				$	112,840

Additional information is as follows:
a.	Land was sold for cash at its carrying amount.
b.	The short-term investments will mature in February 2019.
c.	Cash dividends were declared and paid in 2018.
d.	New equipment with a cost of $167,600 was purchased for cash, and old equipment was sold at its carrying amount.
e.	Long-term notes of $18,000 were paid in cash, and notes of $38,000 were converted to shares.

1.	Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2018 by using the indirect method. (Negative answers should be indicated by a minus sign.)