Example 2 A comparative balance sheet for the Smith Corporation is presented below: Smith CORPORATION Comparative Balance Sheet Assets Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation S 37,000 80,000 22,000 18,000 70,000 31,000 60,000 17,000 40,000 60,000 (20,000) Total Assets 207.000 S195.000 Accounts payable Bonds payable Common stock S 12,000 27,000 40,000 6,000 19,000 115,000 Retained earnings Total liabilities and stockholders' equity $207,000 195,000 Additional information: . Net loss for 2014 is $12,000. Net sales for 2014 are $250,000 2. Cash dividends of S15,000 were declared and paid in 2014. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year 4. Equipment with a cost of S15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash 5. S12,000 of bonds were retired during the year at carrying (book) value 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchang was $25,000 Required Prepare a statement of cash flows for the year ended 2014. The fomat of Statement of Cash Flows is provided for you below