The financial statements for Facetime Corp. for the year ended December 31, 2017, are as follows:

Additional information:
a. The administrative expenses included the following:
Amortization expense on plant and equipment, $100,000. Write-down 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 preferred shares for an investment purchase of $200,000.
e. Declared and paid cash dividends: preferred, $230,000; common, $250,000.
f. Sold 20,000 preferred 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, 2017, using the indirect method. The investment in the money market fund is a cash equivalent.
2. Did the company improve its cash position in 2017? Give your reasons.

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FACETIME CORP Balance Sheet December 31,2017 and 2016 2017 2016 Assets Cash Investment in money market fund Accounts receivable Merchandise inventory Prepaid expenses Plant and equipment 10,000 0 189,000 280,000 30,000 1,798,000 (160,000) 200,000 90,000 $2,437,000 $ 18,000 40,000 175,000 610,000 23,000 1,654,000 (120,000 Less accumulated amortization Investment Goodwill 100,000 Total assets $2,500,000 Liabilities Accounts payable Salaries payable Loan payable 176,000 110,000 350,000 636,000 120,000 100,000 400,000 620,000 Total liabilities Shareholders' equity Preferred shares Common shares Retained earnings 800,000 500,000 01,000 ,801,000 $2,437,000 500,000 500,000 880,000 1,880,000 $2,500,000 Total shareholders' equity Total liabilities and shareholders' equity FACETIME CORP ncome Statement For the Year Ended December 31, 2017 Net sales Cost of goods sold Gross marg Operating expenses: $1,600,000 840,000 760,000 in Selling expenses 350,000 230,000 40,000 Administrative expenses Interest expense Total operating expenses Operating income Income taxes Net income 620,000 140,000 39,000 $ 101,000