Condensed financial data for Next Wave Company follow:
NEXTWAVE COMPANY
Comparative Statement of Financial Position

NEXTWAVE COMPANY
Statement of Earnings Data
For the year ended December 31, 2011

Additional information:
1. Some of the long-term investments were sold at their book value (or carrying value). As a result, there was no gain or loss on this transaction.
2. Equipment costing $47,000 was sold for $10,500, which was $3,700 more than its book value at the time of disposal.
Required:
a. Prepare the company's statement of cash flows for 2011.
b. Calculate the amount of cash that was paid for income taxes during 2011.

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Dec. 31, 2011 Dec. 31, 2010 Assets Gash Accounts receivable Inventories Long-term investments Property, plant, and equipment Accumulated depreciation $ 66,700 76,800 121,900 84,500 280,000 (79,500) 550,400 $ 47,250 57,000 92,650 97.000 235,000 (70,000) $458,900 Liabilities and shareholders' equity Accounts payable Income taxes payable Bonds payable Share capital Retained earnings 52,700 12,000 100,000 230,000 155,700 550.400 $ 49.200 18,000 70,000 200,000 121,700 458,900 Sales revenue Gain on sale of equipment $437,500 3,700 441,200 Less Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Income taxes $200,500 63,800 49,700 40,000 354,000 $ 87,200 Net earnings