Refer to the information presented for E-Perform Ltd. in P17-7A.

Additional information:
1. Accounts payable relate only to merchandise creditors.
2. Accrued expenses payable and prepaid expenses relate to operating expenses.
Instructions
Prepare a cash flow statement for the year using the direct method.
TAKING IT FURTHER E-Perform Ltd.'s cash balance more than doubled in 2014. Briefly explain what caused this, using the cash flow statement.

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E-PERFORM LTD Balance Sheet December 31 2014 $97,800 75,800 122,500 38,400 128,000 270,000 (50,000) S682,500 2013 $ 48,400 Accounts receivable 43,000 92,850 Prepaid expenses Long-term equity investments Property, plant, and equipment Accumulated depreciation 114,000 242,500 (52,000) $514,750 Liabilities and Shareholders Equity 93,000 11,500 110,000 220,000 234,000 14,000 S682,500 $ 77,300 7,000 150,000 175,000 105,450 Accrued expenses payable Notes payable (non-trade) Common shares Retained earnings Accumulated other comprehensive income Total liabilities and shareholders' equity $514,750 E-PERFORM LTD Income Statement Year Ended December 31, 2014 $492,780 185,460 307,320 Sales Cost of goods sold Gross proft Operating expenses Depreciation expense Loss on sale of equipment Profit from operations Other expenses $62,410 46,500 7,500 116,410 190,910 Interest expense Profit before income tax Income tax expense Profit 4,730 186,180 45,000 $141,180