The financial statements of Wetaskiwin Ltd., a private company reporting under ASPE, follow:

Additional information:
1. Short-term notes receivable are from loans to other companies. During the year, the company collected the outstanding balance at December 31, 2016, and made new loans in the amount of $14,000.
2. Equipment was sold during the year. This equipment cost $15,000 originally and had a carrying amount of $10,000 at the time of sale.
3. Equipment costing $10,000 was purchased in exchange for a $10,000 note payable.
4. Depreciation expense is included in operating expenses.
5. Accounts receivable are from the sale of merchandise on credit.
6. Accounts payable relate to the purchase of merchandise on credit.
Instructions
(a) Prepare a cash flow statement for the year using the indirect method.
(b) Prepare the operating section of the cash flow statement using the direct method.
TAKING IT FURTHER
Wetaskiwin Ltd. had a relatively small change in its cash balance in 2017; cash decreased by only $1,000. Is it still necessary or important to prepare a cash flow statement? Explain.

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WETASKIWIN LTD. Balance Sheet December 31 Assets Cash Short-term notes receivable Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation 2017 $9,000 14,000 28,000 29,000 73,000 (30,000) $123,000 2016 10,000 23,000 14,000 25,000 78,000 (24,000) Total assets $126,000 Liabilities and Shareholders' Equit Accounts payable Income tax payable Notes payable Common shares Retained earnings 25,000 3,000 15,000 25,000 55,000 $123,000 43,000 20,000 10,000 25,000 28,000 $126,000 Total liabilities and shareholders' equity WETASKIWIN LTD. Income Statement Year Ended December 31,2017 $286,000 194,000 92,000 Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Other revenues and expenses $38,000 2,000 40,000 52,000 $(1,000) 2,000 Interest revenue Interest expense Profit before income tax Income tax expense Profit 1,000 51,000 15,000 36,000