The comparative statement of financial position for Charmaine Retailers Ltd. follows:

Additional information:
1. Net income was $62,000 in 2018.
2. Depreciation expense was $21,000 in 2018.
3. Payments made to the bank pertaining to the bank loan were $10,000 in 2018. Some new loans were obtained that year.
4. Common shares were issued in 2018 and no shares have been bought back by the company.
5. In 2018, no furniture was sold.
Instructions
(a) Prepare a statement of cash flows using the indirect method for 2018.
(b) Assess the strength of the company's cash flows for that year.

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CHARMAINE RETAILERS LTD Statement of Financial Position December 31 2018 2017 Assets Cash Accounts receivable Inventory Furniture Accumulated depreciation Total assets $ 18,000 9,000 42,000 168,000143,00o 163,00080,00o (45.000) (24,000) $354,00O $250,000 50,000 1a ies areholder 45,000 35,000 103,000 76,000 60,00055,00o 146,00084,00o Total liabilities and shareholders' equity $354,000 $250,ooo Accounts payable Bank loan payable (noncurrent) Common shares Retained earnings