Income statement For the Year Ended December 31, 2008 Sales revenue $3,855,000 Gain on sale of capital assets 10,000 3,865,000 Expenses Cost of goods sold $1,905,000 Wages expense 323,000 Amortization expense 95,000 Other operating expenses 525,000 Interest expense 150,000 Income taxes 345,000 Total expenses 3,343,000 Net income $ 522,000 Additional information: 1. Old capital assets originally costing $120,000 were sold for $70,000. 2. New capital assets were purchased for cash during the year. 3. Some of the bonds were repaid during the year. 4. New shares were issued for cash during the year. 5. Dividends were declared and paid during the year. Required: Prepare a cash flow statement for Gibbons Electronic Company for the year ended December 31, 2008. ]Financial statement data for Gibbons Electronics Company for 2008 are as follows: GIBBONS ELECTRONICS COMPANY Comparative Balance Sheets Dec. 31, 2008 Dec. 31, 2007 Assets Cash $ 285,000 $ 305,000 Accounts receivable 334,000 384,000 Inventory 306,000 256,000 Prepaid insurance 55,000 35,000 Total current assets 980,000 980,000 Capital assets 650,000 590,000 Accumulated amortization (165,000) (130,000) Net capital assets 485,000 460,000 Total assets $1,465,000 $1,440,000 Liabilities and shareholders' equity Accounts payable $ 60,000 $ 50,000 Wages payable 15,000 20,000 Unearned revenue 50,000 25,000 Income taxes payable 55,000 45,000 Total current liabilities 180,000 140,000 Bond payable 490,000 575,000 Total liabilities 670,000 715,000 Common shares 365,000 285,000 Retained earnings 430,000 440,000 Total shareholders' equity 795,000 725,000 Total liabilities and shareholders' equity $ 1,465,000 $ 1,440,000