Given Information:         
Lincoln Corporation had no noncash investing and financingtransactions for 2018. During the year, Lincoln sold equipment for$15,100, which had originally cost $12,700, with a book value of$10,700. Lincoln did not issue any notes payable during the year,but did issue common stock for $30,000. Note that the corporation'sboard of directors authorized the payment of dividends for theyear.          
          
Lincoln Corporation         
Income Statement         
For the Period Ending December 31, 2018
          
Sales revenue $347,000
Cost of goods sold 78,000
Gross profit $269,000

Operating expenses:         
Salaries expense $26,500       
Depreciation expense 4,900       
Other operating expenses   12,500     43,900
Operating Income $225,100

Other incomes and expenses:         
Gain on Sale of equipment   $4,400      
Interest expense 9,900        5,500
Income before taxes $219,600
Income tax expense (36,600)
Net Income $183,000
          
          
          
Lincoln Corporation         
Balance Sheets         
          
Year ended December 31,      
Assets 2018       2017
Current Assets:         
Cash and cash equivalents $50,000       $23,500
Accounts receivable 32,100       29,100
Inventory 86,000 93,300
Prepaid insurance 3,300 2,800
Total current assets: $171,400       $148,700
Property, plant & equipment   153,000       136,000
Less: Accumulated depreciation(30,000)      (27,100)
Investments 113,000        -  
Total Assets $407,400       $257,600

Liabilities          
Current Liabilities:         
Accounts payable (Inventory purchases)   $33,200       $36,500
Salaries payable 2,900        7,400
Interest payable 2,400        -  
Taxes payable 5,300        -  
Other accrued operating expenses 18,800       22,100
Total current liabilities 62,600       66,000
Bonds Payable 78,000        113,000
Total Liabilities 140,600       179,000

Stockholders' Equity         
Common stock 107,000        77,000
Retained earnings 159,800       1,600
Total stockholders' equity 266,800       78,600
Total liabilites and equity $407,400       $257,600
          
Instructions: Prepare a statement of cash flows using the indirectmethod.