The financial statements for Facetime Corp. for the year ended December 31, 2014, are as follows:

Additional information:
a. The administrative expenses included:
Amortization expense on plant and equipment, $100,000.
Writedown of goodwill, $10,000.
b. Sold equipment for its book value. The equipment cost $430,000 and had been amortized for $60,000.
c. Purchased additional equipment in December for $574,000.
d. Issued common shares for land valued at $200,000.
e. Declared and paid cash dividends: Preferred, $230,000; Common, $250,000.
f. Sold 20,000 common shares for $5.00 per share.
g. Paid $90,000 (of which $40,000 was interest) on the loans.
Required
1. Prepare a cash flow statement for Facetime Corp. for the year ended December 31, 2014, using the indirect method. The investment in the money market fund is a cash equivalent.
2. Did the company improve its cash position in 2014? Give your reasons.

FACETIME CORP Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Cash Investment in money mar Accounts receivable Merchandise inventorv Prepaid expenses Plant and equipment $ 10,000 $ 18,000 40,000 175,000 610,000 23,000 1,654,000 (120,000) ket fund 189,000 280,000 30,000 1,798,000 (160,000) 200,000 90,000 $2,617,000 Less accumulated amortization Land 100,000 $2,500,000 Goodwill Total assets Liabilities $ 176,000 110,000 350,000 636,000 Accounts payable Salaries payable $ 120,000 100,000 400,000 620,000 Loan payable Total liabilities Shareholders' equity Preferred shares Common shares Retained earnings 500,000 800,000 501,000 1,981,000 $2,617,000 500,000 500,000 880,000 1,880,000 $2,500,000 Total shareholders' equity Total liabilities and shareholders' equity FACETIME CORP Income Statement For the Year Ended December 31, 2014 Net sales Cost of goods sold Gross margin $1,600,000 840,000 760,000 Operating expenses: Selling expenses 350,000 230,000 40,000 620,000 140,000 39,000 101,000 Administrative expenses Interest expense Total operating expenses Operating income Income taxes Net income