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Part III. Prepare statement of cash flows (indirect method) and answer questions (P13-6B) The comparative, unclassified statement of financial position for Anderson Ltd. shows the following balances at December 31: Additional information regarding 2018: 1. Net income was $53,000. 2. A gain of $14,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 3. A gain on disposal of $28,000 was recordeo when an old building was sold for $40,000 cash. A new building was purchased for $304,000 and depreciation expense on buildings for the year was $45,000. 4. Equipment costing $125,000 was purchased while a loss of $5,000 was recorded on equipment that originally cost $30,000 and was sold for $4,000. 5. The company took out $350,000 of new bank loans during the year. 6. Dividends were declared and paid during the year. 7. Common shares were issued for $10,000. Some common shares were also reacquired at the price at which they were originally issued. Instructions (a) Prepare the statement of cash flows using the indirect approach. (b) Anderson Ltd.'s cash position decreased to zero. Identify the primary reason for this significant decrease. (c) The company's banker is worried. Why? Part III. Prepare statement of cash flows (indirect method) and answer questions (P13-6B) The comparative, unclassified statement of financial position for Anderson Ltd. shows the following balances at December 31: Additional information regarding 2018: 1. Net income was $53,000. 2. A gain of $14,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 3. A gain on disposal of $28,000 was recordeo when an old building was sold for $40,000 cash. A new building was purchased for $304,000 and depreciation expense on buildings for the year was $45,000. 4. Equipment costing $125,000 was purchased while a loss of $5,000 was recorded on equipment that originally cost $30,000 and was sold for $4,000. 5. The company took out $350,000 of new bank loans during the year. 6. Dividends were declared and paid during the year. 7. Common shares were issued for $10,000. Some common shares were also reacquired at the price at which they were originally issued. Instructions (a) Prepare the statement of cash flows using the indirect approach. (b) Anderson Ltd.'s cash position decreased to zero. Identify the primary reason for this significant decrease. (c) The company's banker is worried. Why

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