Condensed financial data follow for E-Perform Ltd.

Additional information:
1. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 note payable.
2. Equipment with an original cost of $57,500 was sold at a loss of $7,500.
3. Notes payable matured during the year and were repaid.
4. E-Perform records any gains and losses on its long-term equity investment as other comprehensive income. There were no purchases or sales of long-term equity investments during the year.
Instructions
Prepare a cash flow statement for the year using the indirect method.
TAKING IT FURTHER If a company has a loss, does that also mean that there has been a net reduction in cash from operating activities? Explain.

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E-PERFORM LTD Balance Sheet December 31 2014 $97,800 75,800 122,500 38,400 128,000 270,000 (50,000) S682,500 2013 $ 48,400 Accounts receivable 43,000 92,850 Prepaid expenses Long-term equity investments Property, plant, and equipment Accumulated depreciation 114,000 242,500 (52,000) $514,750 Liabilities and Shareholders Equity 93,000 11,500 110,000 220,000 234,000 14,000 S682,500 $ 77,300 7,000 150,000 175,000 105,450 Accrued expenses payable Notes payable (non-trade) Common shares Retained earnings Accumulated other comprehensive income Total liabilities and shareholders' equity $514,750 E-PERFORM LTD Income Statement Year Ended December 31, 2014 $492,780 185,460 307,320 Sales Cost of goods sold Gross proft Operating expenses Depreciation expense Loss on sale of equipment Profit from operations Other expenses $62,410 46,500 7,500 116,410 190,910 Interest expense Profit before income tax Income tax expense Profit 4,730 186,180 45,000 $141,180