The financial statements of Wetaskiwin Limited are presented here:

WETASKIWIN LIMITED

Statement of Financial Position

December 31

WETASKIWIN LIMITED
Income Statement
Year Ended December 31, 2015

Additional information:
1. Recorded an unrealized loss of $9,000 on trading investments.
2. Equipment was sold during the year for $8,000 cash. This equipment originally cost $15,000 and had a carrying amount of $10,000 at the time of sale.
3. Equipment costing $10,000 was purchased in exchange for $5,000 cash and a bank loan for the balance.
4. Accounts payable relate to merchandise creditors.
5. Operating expenses are composed of $11,000 of depreciation expense, $12,000 of administrative expenses, $49,000 of salaries expense, and a $2,000 loss on the disposal of equipment.
Instructions
(a) Prepare the statement of cash flows, using either (1) the indirect method or (2) the direct method, as assigned by your instructor.
(b) Wetaskiwin's cash position declined by $1,000 between 2014 and 2015. Identify the reason(s) for this decrease?

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2015 2014 Assets Cash Trading investments Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total assets 10,000 23,000 14,000 25,000 78,000 (24,000) $ 9,000 14,000 28,000 29,000 73,000 (30,000) $123,000 $126,000 Liabilities and Shareholders' Equit Accounts payable Income tax payable Bank loan payable Common shares Retained earnings Accumulated other comprehensive loss Total liabilities and shareholders' equity 32,000 2,000 15,000 25,000 64,000 (15,000) 58,000 10,000 20,000 25,000 28,000 (15,000) $126,000 $123,000 Sales Cost of goods sold Gross proft Operating expenses Profit from operations Other revenues and expenses $286,000 154,000 132,000 74,000 58,000 Unrealized loss on trading investments $9,000 3,000 Interest expense Profit before income tax Income tax expense Profit 12,000 46,000 10,000 S 36,000