Jia Inc. applies ASPE and had the following statement of financial position at the end of operations for 2013: Cash JIA INC. Statement of Financial Position December 31, 2013 $ 20,000 Accounts payable $ 30,000 Accounts receivable 21,200 Notes payable 41,000 FV-NI investments 32,000 Common shares 100,000 Equipment (net) Land 81,000 Retained earnings 23,200 40,000 $194,200 $194,200 During 2014, the following occurred: 1. Jia Inc. sold some of its fair value-net income investment portfolio for $19,000. This transaction resulted in a gain of $3,400 for the firm. At December 31, 2014, the remaining fair value-net income investments in the portfolio had fair value of $16,400 and original cost of $13,000. No investments were purchased in 2014. 2. A tract of land was purchased for $18,000 cash. 3. Long-term notes payable in the amount of $17,000 were retired before maturity by paying $17,000 cash. 4. Additional $26,000 in common shares were issued. 5. Dividends totalling $9,200 were declared and paid to shareholders. 6. Net income for 2013 was $32,000 after allowing for depreciation of $12,000. 7. Land was purchased through the issuance of $30,000 in bonds. 8. At December 31, 2014, cash was $41,000; accounts receivable was $41,600; and accounts payable remained at $30,000. Instructions a) Prepare a statement of cash flows for the year ended December 31, 2014. Net income a. JIA Inc. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by $44,000 operating activities Depreciation expense $19,000 Gain on disposal of machinery (7,000) Gain on disposal of trademarks (10,000) Increase in accounts receivable ($111,000 $90,000) (21,000) Increase in inventory ($107,000 - $82,000) (25,000) Decrease in accounts payable ($93,000 - $83,000) (10,000) (54,000) Net cash used by operating activities (10,000) Cash flows from investing activities Proceeds from sale of trademarks 20,000 Proceeds from sale of machinery ($18,000+ $7,000) 25,000 Net cash provided by investing activities 45,000 Cash flows from financing activities Issuance of common shares 12,000 Retirement of long-term debt (15,000) Payment of cash dividends (14,000) Net cash used by financing activities (17,000) Net increase in cash 18,000 Cash at beginning of year 50,500 Cash at end of year $68,500 Note: JIA purchased machinery at a cost of $40,000 in exchange for long-term debt.