Jia Inc. applies ASPE and had the following statement of financial position at the end of operations for 2013:

During 2014, the following occurred:
1. Jia Inc. sold some of its fair value-net income investment portfolio for $19,000. This transaction resulted in a gain of $3,400 for the firm. At December 31, 2014, the remaining fair value- net income investments in the portfolio had fair value of$16,400 and original costof$13,000. No investments were purchased in 2014.
2. A tract of land was purchased for $18,000 cash.
3. Long-term notes payable in the amount of $17,000 were retired before maturity by paying $ 17,000 cash.
4. An additional $26,000 in common shares was issued.
5. Dividends totalling $9,200 were declared and paid to shareholders.
6. Net income for 2014 was $32,000 after allowing for depreciation of $ 12,000.
7. Land was purchased through the issuance of $30,000 in bonds.
8. At December 31, 2014, cash was $41,000; accounts receivable was $41,600; and accounts payable remained at $30,000.
Instructions
(a) Prepare a statement of cash flows for the year ended December 31, 2014.
(b) Prepare the statement of financial position as it would appear at December 31, 2014.
(c) How might the statement of cash flows help the user of the financial statements?
*(d) Calculate the following ratios:
1. Free cash flow
2. Current cash debt coverage ratio
3. Cash debt coverage ratio
(e) What is Jia's cash flow pattern? Discuss any areas of concern.

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JIA INC. Statement of Financial Position December 31, 2013 Cash Accounts receivable FV-NI investments Equipment (net) Land 20,000 21,200 32,000 81,000 40,000 $194,200 Accounts payable Notes payable Common shares Retained earnings 30,000 41,000 100,000 23,200 $194,200