Statement of cashflows for dec 31 Cashflows from operating activities Net Income Adjustments to reconcile net income to net cashflow from operating activities Depreciation expense ($66000+$20000-$30000) Gain on sale of equipment ($37000-$30000) Increase in accounts receivable ($86000-$78000) Decrease in inventories ($193000-$171000) $ 88,000.00 $ 56,000.00 $ -7,000.00 $ -8,000.00 $ 22,000.00 Decrease in accounts payable ($46000-$37000) $ -9,000.00 net cashflow from operating activities $1,42,000.00 Cashflows from investing activities Cash paid for purchase of equipment ($257000+$50000-$202000) $ -1,05,000.00 Cash received from equipment $ 37,000.00 Cash received from land ($99000-$73000) $ 26,000.00 Net cashflows from investing activities $ -42,000.00 Cashflows from financing activities Cash paid for dividends $ -31,000.00 Cash paid for bonds payable ($209000-$148000) $ -61,000.00 Cash received from common shares ($215000-$172000) $ 43,000.00 Net cashflows from financing activities $ -49,000.00 Net increase $ 51,000.00 Cash balance, beginning balance $ 22,000.00 Cash balance, ending balance $ 73,000.00