the year ended September 30, 2017 vities. Also prepare a note to the financial. ash investing, and financing activities. All current ntary schedule showing, the cash flows from operating activities tes payable, result from operating transactions using the indirect method. Problem 17-8A The financial statements for Facetime Corp, for the year ended December 31, 2017, are as follows Distinguishing an investing, and fe activities; using statements to co cash effects of business transam cash flow stat indirect method (2)4 1. Net cash flor opesating, $58 nvesting, $20 financing, S43 FACETIME CORP Balance Sheet December 31,2017 and 2016 2017 Assets 2016 Cash S Investment in money market fund 10,000 $ 18,000 Accounts receivable Merchandise inventory Prepaid expenses Plant and equipment Less accumulated amortization 0 40,000 189.000 175,000 280,000 610,000 30,000 23,000 1,798,000 1,654,000 (160,000) 200,000 (120,000) Investment 0 90,000 100,000 Goodwill $2,500,000 $2,437,000 Total assets Liabilities $ 120,000 $ 176,000 Accounts payable 100,000 110,000 Salaries payable Loan payable 400,000 350,000 620,000 636,000 otal liabilities Shareholders' equity 500,000 800,000 500,000 Preferred shares 500,000 880,000 Common shares 501,000 1,880,000 Retained earnings 1,801,000 $2,500,000 Total shareholders' equity $2,437,000 Total liabilities and shareholders' equity FACETIME CORP Income Statement For the Year Ended December 31, 2017 $1,600,000 840,000 760,000 Net sales Cost of goods sold Gross margin Operating expenses: 350,000 230,000 Selling expenses 40,000 Administrative expenses 620,000 Interest expense 140,000 Total operating expenses Operating income 39,000 $ 101,000 Income taxes Net income Additional information: a. The administrative expenses included the following: Amortization expense on plant and equipment, $100,000. Write-down of goodwill, $10,000. b. Sold equipment for its book value. The equipment cost $430,000 and had been amor tized for $60,000. Purchased additional equipment in December for $574,000. c d. Issued preferred shares for an investment purchase of $200,000. e. Declared and paid cash dividends: preferred, $230,000; common, $250,000. f. Sold 20,000 preferred shares for $5.00 per share. g. Paid $90,000 (of which $40,000 was interest) on the loans. Required 1. Prepare a cash flow statement for Facetime Corp. for the year ended December 31, 2017, using the indirect method. The investment in the money market fund is a cash equivalent. 2. Did the company improve its cash position in 2017? Give your reasons. Problem 17-9A Sahanji Products Ltd.'s accountants have developed the following data from the company's accounting records for the year ended December 31, 2017: a. Salaries expense, $210,600. . Cash payments to purchase nm Procs