Problem #3 The income statement, balance sheets, and additional information for Surround Sound, Inc., are provided below. Surround Sound, Inc. Income Statement For the Year Ended December 31, 2018 Revenues Gain on sale of land $4,500,000 15,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net Income 2.800,000 650,000 75,000 280,000 3.805.000 $710,000 Surround Sound, Inc. Balance Sheets December 31 2018 2017 Increase (or Decrease (D) Assets Current Assets: Cash Accounts receivable Inventory Long-Term Assets: Land Equipment Accumulated depreciation Total Assets $ 50,000 65,000 130,000 $ 30,000 80,000 90,000 $20,000 (1) 15,000 (D) 40,000 (1) 150,000 650,000 (195.000) $850,000 200,000 480,000 (120.000) $760,000 50.000 (D) 170,000 (1) 75,000 (1) Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable 7.500 Income tax payable 15,000 Long-Term Liabilities: Notes payable 100,000 Stockholders' Equity: Common stock 280,000 $ 55,000 5,000 20,000 $17,500 (D) 2,500 (1) 5,000 (D) 200,000 100,000 (D) 280,000 Retained earnings Total Liabilities and Equity 410,000 $850,000 200,000 $760,000 210,000 (1) Additional Information for 2018: 1. Sold land costing $50,000 for $65,000, resulting in a gain on sale of $15,000. 2. Purchased equipment for $170,000 cash. 3. Repaid $100,000 in notes payable at the beginning of the year. 4. Declared and paid a cash dividend of $500,000. Required: Prepare the statement of cash flows using the indirect method