Prepare Statement of cash flows for current year using indirect method.

Dynamic Drones Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash Accounts Receivable, Net Merchandise Inventory Prepaid Rent Total Current Assets $60,000 $140,000 $110,000 $20,000 $330,000 $80,000 $100,000 $70,000 $10,000 $260,000 Property, plant, and Equipment: Equipment $400,000 Less: Accumulated Depreciation - Equipment ($60,000) Total Property, Plant, and Equipment $340,000 Total Assets $670,000 $191,000 ($42,400) $148,600 $408,600 2019 2018 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Unearned Revenue Salaries Payable Federal Income Taxes Payable Total Current Liabilities $150,000 $40,000 $40,000 $10,000 $240,000 $40,000 $50,000 $30,000 $10,000 $130,000 Long Term Liabilities Note Payable Total Liabilities $50,000 $290,000 $130,000 $98,600 Stockholders' Equity: Common Stock, $10 Par Paid-In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $150,000 $20,000 $210,000 $380,000 $670,000 $180,000 $278,600 $408,600 Dynamic Drones Comparative Statement of Income For the Years Ended December 31, 2019 and 2018 2019 2018 $900,000 $600,000 $300,000 $600,000 $420,000 $180,000 Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Gain on Sale of Equipment Interest Expense $100,000 $20,000 $20,000 $140,000 $160,000 $3,000 $7,000 ($4,000) $156,000 $54,600 $101,400 $100,000 $20,000 $10,000 $130,000 $50,000 $0 $5,000 ($5,000) $45,000 $15,750 $29,250 Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income Dynamic Drones Comparative Statement of Retained Earnings For the Years Ended December 31, 2019 and 2018 2019 Retained Earnings, Beginning of Year $180,000 Net Income $101,400 Less: Dividends $71,400 Retained Earnings, End of Year $210,000 2018 $176,000 $29,250 $25,250 $180,000 1. Equipment with a cost of $11,000 on which depreciation has been recorded was sold for cash. Equipment was purchased using cash and a long-term note payable. 2. Stock was issued for cash. 3. Dividends were paid in cash