The comparative, unclassified statement of financial position for Anderson Ltd. shows the following balances at December 31:

Additional information regarding 2018:
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 reacquired 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?

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2018 2017 Assets Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-buildings(67,00o) (100,ooo) Equipment Accumulated depreciation-equipment (18,00o) (10,ooo) Total assets Liabilities and Shareholders' Equity Bank overdraft Accounts payable Income tax payable Interest payable Bank loan payable-current portion Bank loan payable-non-current portion520,000 212,000 Common shares Retained earnings Total liabilities and shareholders' equity $709,000 $394,000 $-0- $ 36,000 38, 20,000o 49,000 35,000 95,000 110,000 477,000 263,0o0 135,000 40,000 $709,00o $394,000 $5,000 00 35,000 3,0002,000 6,0007,000 26,000 20,0o0 9,000 90,00088,00o 50,00030,000