A comparative statement of financial position and a statement of earnings for Standard Card Company follow:
STANDARD CARD COMPANY
Statement of Financial Position

STANDARD CARD COMPANY
Statement of Earnings
For the year ended December 31, 2011

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:
Prepare a statement of cash flows for the year ended December 31, 2011.

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Dec. 31, 2011 Dec. 31, 2010 Assets Current assets Cash Accounts receivable Inventories Prepaid insurance Total current assets $134,000 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) 238,000 350,000 (75,000) 275,000 $665,000 $594.000 Total assets Liabilities Current liabilities $ 88,000 3,000 13,000 04,000 100,000 204,000 S 83,000 Accounts payable Interest payable Uncarned revenue Total current liabilities 4,000 18,000 105,000 150,000 255,00 Long-term debt Total liabilities Shareholders' equity Share capital Retained earnings Total shareholders' equity 200,000 261,000 461,000 $665,000 115,000 224,000 339,000 594,000 Total liabilities and shareholders equity $207,000 Expenses Cost of goods sold Depreciation expense Insurance expense Interest expense Loss on sale of equipment ncome tax $ 97,000 12,000 10,000 8.000 13,000 23,000 Total expenses Net earnings 163,000 44,000