AP5-10B (Preparation of statement of cash flows) A comparative statement of financial position and a statement of earnings for Standard Card Company follow.

STANDARD CARD COMPANY Statement of Financial Position

Dec. 31, 2024 (top number) Dec. 31, 2023(bottom number)

Assets

Current assets

Cash $134,000 $111,000

Accounts receivable 83,000 78,000

Inventory 200,000 110,000

Prepaid insurance 10,000 20,000

Total current assets 427,000 319,000

Non-current assets

Equipment 305,000 350,000

Accumulated depreciation (67,000) (75,000)

Total non-current assets 238,000 275,000

Total assets $ 665,000 $ 594,000

Liabilities

Current liabilities

Accounts payable $88,000 $83,000

Interest payable 3,000 4,000

Deferred revenue 13,000 18,000

Total current liabilities 104,000 105,000

Long-term debt 100,000 150,000

Total liabilities 204,000 255,000

Shareholders equity

Common shares 200,000 115,000

Retained earnings 261,000 224,000

Total shareholders equity 461,000 339,000

Total liabilities and shareholders equity $665,000 $594,000

STANDARD CARD COMPANY Statement of Income For the year ended December 31, 2024

Sales revenue $207,000

Expenses

Cost of goods sold $97,000

Depreciation expense 12,000

Insurance expense 10,000

Interest expense 8,000

Loss on sale of equipment 13,000

Income tax expense 23,000

Total expenses 163,000

Net income $ 44,000

Additional information: The loss on the sale of equipment occurred when a relatively new machine with a cost of $100,000 and accumulated depreciation of $20,000 was sold because a technological change had made it obsolete. Required

Prepare a statement of cash flows for the year ended December 31, 2024, using the indirect method. Determine the cash flows from operating activities using the direct method.