Construct the 2011 Statement of Cash Flows using Item 1 and Item 2.

						2011		2010
ASSETS
ACCOUNTS RECEIVEABLE (NET)						42500		350000
CASH						95000		120000
PLANT & EQUIPMENT						2800000		2500000
LESS: ACCUMULATED DEPRECIATION						-950000		-850000
INVESTMENTS						100000		150000
INVENTORY						550000		450000
PREPAID EXPENSES						45000		500000
TOTAL ASSETS						3065000		2770000
LIABILITIES & SHAREHOLDER'S FUNDS
NOTES PAYABLE						175000		200000
COMMON STOCK, $1 PAR VALUE						250000		250000
CAPITAL PAID IN EXCESS OF PAR						500000		500000
RETAINED EARNINGS						905000		665000
BONDS PAYABLE, 2016						700000		700000
ACCOUNTS PAYABLE						475000		375000
ACCRUED EXPENSES						60000		80000
TOTAL LIABILITIES & SHAREHOLDER'S FUNDS						3065000		2770000
ALL EXPENSES & INCOMES ARE TRANSFERRED TO THE INCOME STATEMENT
COMPARATIVE INCOME STATEMENT FOR THE YEARS ENDED 2010 & 2011
						2011		2010
SALES						3300000		3600000
LESS: COST OF GOODS SOLD						-2250000		-2300000
GROSS PROFIT						1050000		1300000
LESS: SELLING & ADMINISTRATIVE EXPENSES						-600000		-650000
LESS: DEPRECIATION EXPENSES						-100000		-90000
OPERATING INCOME						350000		560000
LESS: INTEREST EXPENSE						-52000		-54000
NET PROFIT BEFORE TAX						298000		506000
LESS: TAX						-58000		-91000
NET PROFIT AFTER TAX						240000		415000