Condensed financial data follow for E-Perform Ltd. E- Perform reports under ASPE.

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. A long-term investment was acquired for cash.
Instructions
(a) Prepare a cash flow statement for the year using the indirect method.
(b) Prepare the operating section of the cash flow statement using the direct method assuming that accounts payable relate only to merchandise creditors and that accrued expenses payable and prepaid expenses relate to operating expenses.
TAKING IT FURTHER
E-Perform Ltd.'s cash balance more than doubled in 2017. Briefly explain what caused this, using the cash flow statement.

E-PERFORM LTD. Balance Sheet December 31 Accounts receivable Long-term investments Property, plant, and equipment Accumulated depreciation Liabilities and Shareholders Accounts payable Accrued expenses payable Common shares 1 earnings Total liabilities and shareholders' equity E-PERFORM LTD Income Statement Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Loss on sale of equipment Profit from operations Other expenses $492,780 185,460 307,320 $62,410 46,500 7,500 116,410 90,910 Interest expense Profit before income tax Income tax expense Profit 4,730 186,180 45,000 $141,180