The statement of financial position for Cool Air Ltd. as at the end of 2010 and its trial balance as at the end of 2011 follow:
COOL AIR LTD.
Statement of Financial Position
December 31, 2010

COOL AIR LTD.
Trial Balance
December 31, 2011

Required:
a. Prepare a statement of earnings, and a calculation of retained earnings, for the year ended December 31, 2011.
b. Prepare a statement of financial position as of December 31, 2011.
c. Prepare a statement of cash flows for the year ended December 31, 2011.

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Assets Cash Accounts Notes receivable Inventories S 31,000 20,000 10,000 41,000 receivable $102,000 Total current asscts Property, plant, and equipment Accumulated depreciation 320,000 (71,000) Total non-current assets Total assets 249,000 $351.000 Liabilities and shareholders' equity Accounts payable Salaries payable Interest payabl 10,000 27,000 6,000 Total current liabilities Bonds payable S 43,000 100,000 143,000 Total liabilities Share capital Retained earnings 200,000 8,000 Total shareholders' equity Total liabilities and shareholders equity 208,000 351,000 Credits Accounts receivable Property, plant, and equipment Accumulated depreciation 3 2 Retained earnings 7 5 $1,107.000 $1107,000