The following information is provided for the Waif Corporation.

During 2015, the following occurred:
1. Net income was $91,000.
2. Bonds were retired by issuing new common stock.
3. No equipment was sold.
4. Cash dividends were paid.
a. Prepare a statement of cash flows for the Waif 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, 2014 December 31, 2015 Assets Cash .... $ 54,500 $ 17,400 Accounts receivable. 64,800 52,200 Inventory.... 142,200 149,300 60,000 87,000 Land..... Plant and equipment 206,000 158,000 33,000 Less: Accum. amortization.. 55,000 Net plant and equipment. 151,000 $472,500 125,000 Total assets..... $430,900 Liabilities and Equity $ 27,000 $ 37,000 Accounts payable.. Bonds payable.... 118,000 158,000 Common stock 170,000 130,000 Retained earnings... 157,500 $472,500 105,900 $430,900 Total liabilities and shareholders' equity