Problem #6 (15 Marks): The financial statements appear below: JDS Inc. Comparative Balance Sheet January 31, 2019 2019 2018 $ 12,000 32,000 31.000 65,000 (20.000) $120.000 $ 23,000 34,000 15.000 78,000 (24,000) $126,000 1 Assets Cash Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Income taxes payable Bonds payable Common shares, 10,000 shares issued Retained earnings Total JDS Inc. Income Statement Year Ended January 31, 2019 Sales Cost of goods sold firmssrofit $ 20,000 10,000 7.000 39.000 44.000 $120.000 $ 23,000 8.000 33,000 24.000 38.000 $126.000 $470,000 400.000 70,000 36.000 14.000 JDS Inc Income Statement Year Ended January 31, 2019 Sales $470.000 Cost of goods sold Gross profit 70,000 Operating expenses 26.000 Income from operations Interest expense 4.RO Income before income taxes 30,000 Income tax expense 10.000 Net caming $20.000 The following additional data were provided 1. Cash dividends declared and paid during the year. 2. During the year, equipment was sold for $12,000 cash. This equipment cost $28,000 originally and a gain of $5,000 was recognized at the time of sale. 3. Equipment was purchased during the year with cash 4. $17,000 in depreciation expense was recorded during the year which is included in operating expenses 5. All operating expenses except for depreciation were paid in cash. 6. No common shares were repurchased and retired during the year. 7. No bond payables were issued to investors during the year. INSTRUCTIONS - Prepare a cash flow statement for the year ended January 31, 2019 using the indirect method