AnorMED Inc., a software retailer, recently completed its 2014 operations. The following information is available:

Additional information regarding AnorMED€™s activities during 2014:
1. Equipment was purchased for $64,848 cash.
2. Issued 3,360 common shares for cash at $28 per share.
3. Declared and paid $147,840 of cash dividends during the year.

Required
Prepare a statement of cash flows for 2014 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations.
Analysis Component: The net increase in cash during 2014 for AnorMED Inc. was $49,560. Briefly explain what caused this change using the statement of cash flows preparedabove.