The financial statements for Facetime Corp. for the year ended December 31, 2014, are as follows:

Additional information:
a. The administrative expenses included:
Amortization expense on plant and equipment, $100,000.
Writedown of goodwill, $10,000.
b. Sold equipment for its book value. The equipment cost $430,000 and had been amortized for $60,000.
c. Purchased additional equipment in December for $574,000.
d. Issued common shares for land valued at $200,000.
e. Declared and paid cash dividends: Preferred, $230,000; Common, $250,000.
f. Sold 20,000 common 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, 2014, using the indirect method. The investment in the money market fund is a cash equivalent.
2. Did the company improve its cash position in 2014? Give your reasons.

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FACETIME CORP Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Cash Investment in money mar Accounts receivable Merchandise inventorv Prepaid expenses Plant and equipment $ 10,000 $ 18,000 40,000 175,000 610,000 23,000 1,654,000 (120,000) ket fund 189,000 280,000 30,000 1,798,000 (160,000) 200,000 90,000 $2,617,000 Less accumulated amortization Land 100,000 $2,500,000 Goodwill Total assets Liabilities $ 176,000 110,000 350,000 636,000 Accounts payable Salaries payable $ 120,000 100,000 400,000 620,000 Loan payable Total liabilities Shareholders' equity Preferred shares Common shares Retained earnings 500,000 800,000 501,000 1,981,000 $2,617,000 500,000 500,000 880,000 1,880,000 $2,500,000 Total shareholders' equity Total liabilities and shareholders' equity FACETIME CORP Income Statement For the Year Ended December 31, 2014 Net sales Cost of goods sold Gross margin $1,600,000 840,000 760,000 Operating expenses: Selling expenses 350,000 230,000 40,000 620,000 140,000 39,000 101,000 Administrative expenses Interest expense Total operating expenses Operating income Income taxes Net income