(Preparation of aStatement of Cash Flows) Acomparative balance sheet for Shabbona Corpo- ration is presented below.

Additional information:

1. Net income for 2007 was $125,000.

2. Cash dividends of $60,000 were declared and paid.

3. Bonds payable amounting ot $50,000 were retired through issuance of common stock.

Additional information:

1. Net income for 2007 was $125,000.

2. Cash dividends of $60,000 were declared and paid.

3. Bonds payable amounting ot $50,000 were retired through issuance of common stock.

presented below. December 31 Assets Cash Accounts receivable Imventories Land Equipment Accumulated depreciation-equipment Total \begin{tabular}{rrr} \hline \multicolumn{1}{r}{2007} & \multicolumn{1}{r}{2006} \\ \cline { 1 - 1 }$73,000 & & $2,000 \\ 82,000 & & 66,000 \\ 180,000 & & 189,000 \\ 71,000 & & 110,000 \\ 260,000 & & 200,000 \\ (69,000) & (42,000) \\ \hline$597,000 & $545,000 \\ \hline \end{tabular} Liabilities and Stockhoiders' Equity Accounts payable Bonds payable Common stock (\$1 par) Retained earnings Total \begin{tabular}{rr} $34,000 & $47,000 \\ 150,000 & 200,000 \\ 214,000 & 164,000 \\ 199,000 & 134,000 \\ \hline$597,000 & $545,000 \\ \hline \end{tabular}