A comparative statement of financial position and a statement of earnings for Standard Card Company follow.

Additional information:
The loss on the sale of equipment occurred when a relatively new machine with a cost of $100,000 and accumulated depreciation of $20,000 was sold because a technological change had made it obsolete.
Required:
a. Prepare a statement of cash flows for the year ended December 31, 2016, using the indirect method.
b. Determine the cash flows from operating activities using the direct method.

STANDARD CARD COMPANY Statement of Financial Position Dec. 31, 2016 Dec. 31, 2015 Assets Current assets Cash Accounts receivable Inventorv Prepaid insurance Total current assets S134,000 83,000 200,000 10,000 427,000 111,000 78,000 110,000 20,000 319,000 Non-current assets Equipment Accumulated depreciation Total non-current assets 305,000 (67,000) 238,000 $665,000 350,000 (75,000) 275,000 S594,000 Total assets Liabilities Current liabilities Accounts payable Interest payable Unearned revenue Total current liabilities $88,000 3,000 13,000 104,000 100,000 204,000 83,000 4,000 18,000 105,000 150,000 255,000 Long-term debt Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity 200,000 261,000 461,000 S665,000 115,000 224,000 339,000 S594,000 Total liabilities and shareholders equity STANDARD CARD COMPANY Statement of Income For the year ended December 31, 2016 Sales $207,000 Expenses Cost of goods sold Depreciation expense Insurance expense Interest expense Loss on sale of equipment Income tax $97,000 12,000 10,000 8,000 13,000 23,000 Total expenses Net income 163,000 44.000