Ex: 2. Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.

2007 2006

Cash $ 177,000 $ 78,000

Accounts receivable 180,000 185,000

Investments 52,000 74,000

Equipment 298,000 240,000

Less: Accumulated depreciation (106,000) (89,000)

Current liabilities 134,000 151,000

Capital stock 160,000 160,000

Retained earnings 307,000 177,000

Additional information:

1) Investments were sold at a loss (not extraordinary) of $10,000;

2) No equipment was sold;

3) Cash dividends paid were $30,000; and

4) Net income was $160,000.

Required: Prepare a statement of cash flows for 2007 for Zubin Mehta Corporation.