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The following is the comparative balance sheet as of December 31, 2019 and 2018 and the income statement for the year ended December 31, 2019 for Lynbrook Inc.:

Lynbrook Inc. Comparative Balance Sheet December 31, 2019 and 2018

Assets: 2019 2018 Cash $ 39 $ 81 Accounts receivable 640 588 Inventory 650 610 Total current assets 1,329 1,279 Property, Plant & Equipment 1,505 1484 Less: Accumulated depreciation (770) (651) Net Property, Plant & Equipment 735 833 Total Assets $ 2,064 $ 2,112 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 260 $ 160 Accrued liabilities 180 170 Income tax payable 77 72 Total current liabilities 517 402 Bonds payable 415 600 Total liabilities 932 1,002 Shareholders' Equity: Common stock 145 145 Retained earnings 987 965 Total stockholders' equity 1,132 1,110 Total Liabilities and Stockholder's Equity $ 2,064 $ 2,112

Lynbrook Inc. Income Statement For the year ended December 31, 2019 Sales $ 3,700 Cost of goods sold 2,540 Gross Margin 1,160 Selling and administrative expenses 880 Net operating income 280 Other income and expenses Gain on sale of equipment 2 Income before taxes 282 Income tax expense 112 Net Income $ 170

The accounting department at Lynbrook provided the additional information for you on the next page. 1. The company sold equipment that had an original cost of $12 million and accumulated depreciation of $7 million. The cash proceeds from the sale were $7 million. The gain on the sale was $2 million. 2. The company purchased equipment for cash during the year. 3. The company did not issue any new bonds during the year. 4. The company paid a cash dividend during the year. 5. The company did not issue or repurchase any shares of common stock during the year.

Required: Prepare a complete statement of cash flows for the year (operating, investing, and financing). Use the indirect method to prepare the operating activities section of the statement.

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