Financial statements for E-Perform, Inc. follow:

E-PERFORM, INC.

Statement of Financial Position

December 31

E-PERFORM, INC.
Income Statement
Year Ended December 31, 2015

Additional information:
1. Prepaid expenses and accrued liabilities relate to operating expenses.
2. An unrealized gain on trading investments of $14,000 was recorded.
3. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 long-term bank loan payable.
4. Old equipment having an original cost of $57,500 was sold for $1,500.
5. Accounts payable relate to merchandise creditors.
6. Some of the bank loan was repaid during the year.
7. A dividend was paid during the year.
8. Operating expenses include $46,500 of depreciation expense and a $7,500 loss on disposal of equipment.
Instructions
(a) Prepare the statement of cash flows, using either
(1) The indirect method or
(2) The direct method, as assigned by your instructor.
(b) E-Perform's cash position doubled between 2014 and 2015. Identify the primary reason(s) for this significant increase?

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2015 2014 Assets Cash Trading investments Accounts receivable Inventories Prepaid expenses Property, plant, and equipment Accumulated depreciation $97,800 128,000 75,800 122,500 18,400 270,000 (50,000) $662,500 $ 48,400 114,000 43,000 92,850 26,000 242,500 (52,000) Total assets S514,750 Liabilities and Shareholders' Equit Accounts payable Accrued liabilities Bank loan payable Common shares Retained earnings 93,000 11,500 110,000 200,000 248,000 $662,500 77,300 7,000 150,000 175,000 105,450 S514,750 Total liabilities and shareholders' equity Sales Cost of goods sold Gross profit Operating expenses Profit from operations Other revenues and expenses $492,780 185,460 307,320 116,410 190,910 Unrealized gain on trading investments $14,000 (4.730 Interest expense Profit before income t Income tax expense Profit 9,270 200,180 45,000 $155,180 ax