Terry Companys Income Statement and comparative Balance Sheets at December 31, 2015 and 2014, are as follows:

TERRY COMPANY

Income Statement

For Year Ended December 31, 2015

Sales revenue $385,000

Dividend income 5,000

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390,000

Cost of goods sold $233,000

Wages expense 82,000

Advertising expense 10,000

Depreciation expense 11,000

Income tax expense 17,000

Loss on sale of investments 2,000 355,000

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Net income $ 35,000

TERRY COMPANY

Balance Sheets

12/31/2015 12/31/2014

ASSETS

Cash $8,000 $12,000

Accounts receivable 22,000 28,000

Inventory 94,000 66,000

Prepaid advertising 12,000 9,000

Long-term investmentsavailable for sale 30,000 41,000

Plant assets 178,000 130,000

Accumulated depreciation (72,000) (61,000)

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Total assets $272,000 $225,000

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LIABILITIES AND STOCKOLDERS EQUITY

Accounts payable $ 27,000 $ 14,000

Wages payable 6,000 2,500

Income tax payable 3,000 4,500

Common stock 139,000 125,000

Retained earnings 97,000 79,000

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Total liabilities and stockholders equity $ 272,000 $ 225,000

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Cash dividends of $17,000 were declared and paid during 2015. Plant assets were purchased for cash, and additional common stock was issued for cash. Investments costing $11,000 were sold for cash at a $2,000 loss.

Questions:

a. Calculate the change in cash that occurred during 2015.

b. Prepare a 2015 Statement of Cash Flow using the indirect method.