The following information is provided for the Loofa Corporation.

During 2015, the following occurred:
1. Net income was $54,610.
2. Equipment was purchased for cash, and no equipment was sold.
3. Shares were sold for cash.
4. Dividends were declared and paid.
a. Prepare a statement of cash flows for the Loofa Corporation.

b. Identify the major accounts contributing to the change in cash position, from the three different components of the cash flow statement.

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Balance Sheets December 31, 2015 December 31, 2014 Assets $ 57,345 $ 21,845 Cash .. ... Accounts receivable.... 43,690 49,150 114,685 Inventory... 98,300 Equipment 101,035 81,920 Less: accumulated amortization... Net equipment.. 24,575 16,385 76,460 65,535 Total assets.... $234,830 $292,180 Liabilities and Equity Accounts payable..... Taxes payable $ 46,420 $ 27,305 5,465 10,920 163,835 Common stock 180,220 Retained earnings.... 60,075 32,770 $234,830 . Total liabilities and equity. .. $292,180