Part II. The comparative, unclassified statement of financial position for Anderson Ltd. shows the following balances at December 31: Assets 2024 2023 Cash $ $ 36,000 Accounts receivable 38,000 20,000 Inventory 49,000 35,000 Land 95,000 110,000 Buildings 477,000 263,000 Accumulated depreciation-buildings (67,000) (100,000) Equipment 135,000 40,000 Accumulated depreciation-equipment (18,000) (10,000) Total assets $ 709,000 $ 394,000 Liabilities and Shareholders' Equity Bank indebtedness $ 5,000 $ Accounts payable 9,000 35,000 Income tax payable 3,000 2,000 Interest payable 6,000 7,000 Bank loan payable-current portion 26,000 20,000 Bank loan payable-non-current portion 520,000 212,000 Common shares 90,000 88,000 Retained earnings 50,000 30,000 Total liabilities and shareholders' equity $ 709,000 $ 394,000 Additional information regarding 2024: 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 recorded 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 repurchased at the price at which they were originally issued. Instructions a. Prepare the statement of cash flows using the indirect approach. b. Did the company manage its noncash working capital effectively? C. The company's banker is worried. Why?