Flanders Corporation's income statement for the year ended June 30, 2008 and its comparative balance sheets as of June 30, 2008 and 2007 appear on the opposite page. During 2008 the corporation sold equipment that cost $48,000 on which it had accumulated depreciation of $34,000, at a loss of $8000. It also purchased land and a building for $200,000 through an increase of $200,000 in mortgage payable; made a $40,000 payment on the mortage; repaid notes but borrowed an additional $60,000 through the issuance of a new note payable; and declared and paid a $120,000 cash dividend.

Prepare a format statement of cash flows.

What are the primary reasons for a large increase in cash?