The comparative, unclassified statement of financial position for Sylvester Ltd. shows the following balances at December 31:

Additional information regarding 2018:
1. Net income was $57,000.
2. A gain of $7,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year.
3. A gain on disposal of $38,000 was recorded when an old building was sold for $50,000 cash. A new building was purchased for $364,000 and depreciation expense on buildings for the year was $55,000.
4. Equipment costing $65,000 was purchased while a loss of $4,000 was recorded on equipment that was sold for $5,000. The equipment that was sold late in the year had accumulated depreciation of $11,000.
5. The company took out $210,000 of new bank loans during the year.
6. Dividends were declared and paid and no common shares were bought back by the company.
Instructions
(a) Prepare the statement of cash flows using the indirect method.
(b) Did the company manage its noncash working capital effectively?
(c) How could the company afford to buy a new building?

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2018 2017 Assets Cash Accounts receivable Inventorv Land Buildings Accumulated depreciation-buildings (67,000) (100,o0o) Equipment Accumulated depreciation-equipment (18,000) (10,000) Total assets $ 23,000o 25,00030,0oo 34,000 55,000 100,000 110,000 527,000 263,00o 85,00040,000 $709,000 $394,0oo ia Bank overdraft Accounts payable Income tax payable Interest payable Dividends payable Bank loan payable-current portion er o- $8,000 $43,000 26,00o 3,0002,000 6,0007,000 1,000 26,00020,000 Bank loan payable-non-current portion 380,00o 212,000 198,00088,00o 50,000 30,000 Total liabilities and shareholders' equity $709,000 $394,000 3,000 Common shares Retained earnings