Data follows for Slow Food Restaurants Inc., which has a December 31 year end:

Additional information:
1. Net earnings for 2011 were $70,000.
2. In 2011, the company sold old equipment with a cost of $ 10,000 and a net book value of $3,000. The sale resulted in a loss of $1,000.
3. The company acquired new equipment costing $30,000 during the year and, to conserve cash, issued shares in exchange.
4. Depreciation expense for the year was $12,000.
5. No bonds were repaid during the year.
Required:
a. Use the information above to prepare a statement of cash flows for Slow Food Restaurants Inc.
b. Comment briefly on the most significant information revealed by Slow Food€™s statement of cash flows.

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2011 2010 Assets Cash Accounts receivable nventory Property, plant, and equipment Accumulated depreciation Land 90,000 60,000 70,000 100,000 (25,000) $ 80,000 75,000 60,000 80,000 (20,000) 100,000 75,000 200,000 495,000 Liabilities and shareholders' equity Accounts payable Wages payable Bonds payable Share capital Retained earnings $155,000 20,000 20,000 130,000 50,000 $ 120,000 25,000 100,000 60,000 90,000 495000$375,000