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The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below.

Extra Surplus Company
Balance Sheet
December 31, 2017
Assets
Cash	$	13,500
Accounts Receivable		6,750
Inventory		16,200
Property and Equipment, Net		27,000
	$	63,450
Liabilities and Stockholders Equity
Accounts Payable	$	13,500
Notes Payable, Long-Term		6,750
Common Stock		27,000
Retained Earnings		16,200
	$	63,450

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2018
Sales	$	22,100
Cost of Goods Sold		5,100
Salaries and Wage Expense		5,100
Interest Expense		1,700
Other Expenses		850
Net Income	$	9,350

Additional data:

• Sales were $22,100; $13,600 in cash was received from customers.
• Bought new land for cash, $17,000.
• Sold other land for its book value of $8,500.
• Paid $1,700 principal on the long-term note payable and $1,700 in interest.
• Issued new shares of stock for $17,000 cash.
• Cash dividends of $2,400 were declared and paid to stockholders.
• Paid $9,700 on accounts payable.
• No inventory purchases were made; other expenses were incurred on account.
• All wages were paid in cash.
• Other expenses were on account.

Required:

1. Prepare a balance sheet at December 31, 2018.
2. Prepare the statement of cash flows using the direct method.

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