L. Net income was $10,000. 2. Trading imvestments consist of term deposits, which are short-term, highly liquid debt investments maturing in this case, in 60 days. 3. A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 4. A gain on disposal of $15,000 was recorded when an old building was sold for $40,000cash. A new building was purchased for $520,000 and depreciation expense on buildings for the year was $12,000. 5. Equiprnent costing $72,000 was purchased while a loss of $11,000 was recorded on equipment that originally cost $42,000 and was sold for \$21,000. 6. The company received $512,000 from new bank loans during the year. 7. Dividends were declared and paid during the year. 8. No common shares were issued during the year, but some were bought back and retired at the amodnt they were originally issued at. instructions a. Prepare the statement of cash flows using the indirect method. h. Did the company nanage its noncash working capital effectively? 5. The company's banker is worried. Why? L. Net income was $10,000. 2. Trading imvestments consist of term deposits, which are short-term, highly liquid debt investments maturing in this case, in 60 days. 3. A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 4. A gain on disposal of $15,000 was recorded when an old building was sold for $40,000cash. A new building was purchased for $520,000 and depreciation expense on buildings for the year was $12,000. 5. Equiprnent costing $72,000 was purchased while a loss of $11,000 was recorded on equipment that originally cost $42,000 and was sold for \$21,000. 6. The company received $512,000 from new bank loans during the year. 7. Dividends were declared and paid during the year. 8. No common shares were issued during the year, but some were bought back and retired at the amodnt they were originally issued at. instructions a. Prepare the statement of cash flows using the indirect method. h. Did the company nanage its noncash working capital effectively? 5. The company's banker is worried. Why