Question 5 A comparative statement of financial position for Spencer Corporation follows: SPENCER CORPORATION Statement of Financial Position December 31 Assets 2014 2013 Cash $48,100 $21,460 Accounts receivable 64,380 43,660 Inventory 172,420 133,940 Investments in shares (fair value through OCI) 46,620 62,160 Land 48,100 76,220 Equipment 288,600 318,200 Accumulated depreciationequipment (86,580 ) (63,640 ) Goodwill 91,760 128,020 Total $673,400 $720,020 Liabilities and Shareholders Equity Accounts payable $8,880 $37,740 Dividends payable 11,100 23,680 Notes payable 236,800 321,900 Common shares 196,100 92,500 Retained earnings 213,120 210,160 Accumulated other comprehensive income 7,400 34,040 Total $673,400 $720,020 Additional information: 1. Net income for the fiscal year ending December 31, 2014, was $14,060. 2. In March 2014, a plot of land was purchased for future construction of a plant site. In November 2014, a different plot of land with original cost of $63,640 was sold for proceeds of $70,300. 3. In April 2014, notes payable amounting to $103,600 were retired through issuance of common shares. In December 2014, notes payable amounting to $18,500 were issued. 4. Fair valueOCI investments were purchased in July 2014 for a cost of $11,100. By December 31, 2014, the fair value of Spencers portfolio of fair valueOCI investments decreased to $46,620. No fair valueOCI investments were sold in the year. 5. On December 31, 2014, equipment with an original cost of $29,600 and accumulated depreciation to date of $8,880 was sold for proceeds of $15,540. No equipment was purchased in the year. 6. Dividends on common shares of $23,680 and $11,100 were declared in December 2013 and December 2014, respectively. The 2013 dividend was paid in January 2014 and the 2014 dividend was paid in January 2015. Dividends paid are treated as financing activities. 7. Goodwill impairment loss was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year. (a) Prepare a statement of cash flows using the indirect method for cash flows from operating activities.