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3. The balance sheet for December 31, 2018, December 31, 2017, and the income statement for the year ended December 31, 2018, for Rocket Company follows. Rocket Company Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Cash Accounts receivable, net Inventory Land Building and equipment Accumulated depreciation Total assets S 25, 000s 20,000 60, 000 80,000 50,000 130,000 (85, 000) 70,000 100,000 50,000 115,000 (70,000) Liabilities and Stockholders' Equity Accounts payable Income taxes payable Wages payable Current notes payable Common stock Retained earnings Total liabilities and stockholders' equity s 35,000o 3,000 3,000 60, 000 100,000 84,000 $ 30,000 4, 000 5, 000 50,000* 110,000* 61,000 During 2018 cash payments for building and equipment $15,000. *During 2018 cash paid for retirement of notes payable $10,000. **During 2018 cash received from issuance of stock. Rocket Company Income Statement For the Year Ended December 31, 2018 $500,000 Sales Less expenses: Cost of goods sold Selling and administrative expenses S330,000 90,000 (includes depreciation of S15,000) Interest expense Total expenses Income before taxes Income tax expense Net income 5,000 75,000 30,000 Note: Cash dividends of $68,000 were paid during 2018. Required: Prepare the statement of cash flows for 2018. (Present cash flows from operations using the indirect approach.)

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