For December 31 , 2014, the balance sheet of the Gardner Corporation is as follows:

Sales for 2015 were $220,000, with cost of goods sold being 60 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 8 percent, while interest on the notes payable was 10 percent. These are based on December 31,2014, balances. Selling and administrative expenses were $22,000, and the tax rate averaged 18 percent.
During 2015, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 10 percent, and accounts payable increased by 25 percent. A new machine was purchased on December 31, 2015, at a cost of $35,000. A cash dividend of $12,800 was paid to common shareholders at the end of 2015. Also, notes payable increased by $6,000 and bonds payable decreased by $10,000. The common stock account did not change.
a. Prepare an income statement for 2015.
b. Prepare a balance sheet as of December 31, 2015.
c. Prepare a statement of cash flows for the year ending December 31,2015. 

Identify the major accounts contributing to the change in cash position, from the three different components of the cash flow statement.

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Balance Sheet Current Assets Liabilities $ 10,000 Accounts payable...... $ 12,000 15,000 Notes payable.... 25,000 Bonds payable..... Cash Accounts receivable.... 20,000 Inventory...... Prepaid expenses. 50,000 12,000 Shareholders' Equity Capital Assets Common stock ...... Plant and equipment ... 250,000 75,000 Acc. amortization..... Retained earnings...... 50,000 105,000 Net plant and equipment 200,000 $262,000 Total liabilities and Total assets. . shareholders' equity.... $262,000