A Firm's Recent Comparative Balance Sheets and Income Statements Follow

A firm's recent comparative balance sheets and income statements follow: $\begin{array}{|l|r|r|}\hline\text { Balance sheets, December } 31 & 2011 & 2010 \\\hline \text { Assets: } & & \\\hline \text { Cash } & \$ 29,500 & \$ 30,000 \\\hline \text { Accounts receivable } & 17,000 & 12,000 \\\hline \text { Capital assets } & 138,500 & 123,500 \\\hline \text { Accumulated depreciation } & \underline{(89,000)} & \underline{(83,500)} \\\hline \text { Total assets } & \$ 96,000 & \$ 82,000\\\hline\\\hline \text { Liabilities and shareholders' equity } & & \\\hline \text { Bonds payable } & \$ \mathbf{2 4 , 5 0 0} & \mathbf{\$ 2 3 , 0 0 0} \\\hline \text { Dividends payable } & \mathbf{4 , 0 0 0} & \mathbf{2 , 5 0 0} \\\hline \text { Common shares } & \mathbf{1 1 , 0 0 0} & \mathbf{9 , 5 0 0} \\\hline \text { Additional paid-in capital } & \mathbf{4 , 5 0 0} & \mathbf{1 , 5 0 0} \\\hline \text { Retained earnings } & \underline{\mathbf{5 2 , 0 0 0}} & \mathbf{4 5 , 5 0 0} \\\hline \text { Total liabilities and stock-holders' equity } & \mathbf{\$ \mathbf { 9 6 , 0 0 0 }} & \mathbf{\$ \mathbf { 8 2 , 0 0 0 }}\\\hline\end{array}$ Income statement for year ended December 31,2011 $\begin{array}{|r|r|}\hline \text { Sales revenue } & \$ 77,500 \\\hline \text { Cost of goods sold } & (53,500) \\\hline \text { Gross margin } & 24,000 \\\hline \text { Depreciation expense } & (16,500) \\\hline \text { Gain on sale of equipment } & \underline{6,500} \\\hline \text { Net income } & \$ 14,000\\\hline\end{array}$ Additional information:
1.During 2011,equipment costing $20,000 was sold for cash.
2.During 2011,$10,000 of bonds payable were issued in exchange for capital assets.There was no amortization of bond discount or premium.
Required:
Prepare the 2011 Statement of Cash Flows using the indirect method.