Statement of Cash Flows (Direct Method) Arctic Company’s income statement and comparative balance sheets as of December 31 of 2016 and 2015 follow:

ARCTIC COMPANY
Income Statement
For the Year Ended December 31, 2016
Sales Revenue $740,000
Cost of Goods Sold $534,000
Wages Expense 190,000
Advertising Expense 31,000
Depreciation Expense 24,000
Interest Expense 18,000
Gain on Sale of Land (25,000) 772,000
Net Loss $(32,000)

ARCTIC COMPANY
Balance Sheets
Dec. 31, 2016 Dec. 31, 2015
Assets
Cash $71,000 $28,000
Accounts Receivable 42,000 49,000
Inventory 107,000 113,000
Prepaid Advertising 10,000 14,000
Plant Assets 360,000 222,000
Accumulated Depreciation (80,000) (56,000)
Total Assets $510,000 $370,000
Liabilities and Stockholders’ Equity
Accounts Payable $17,000 $31,000
Interest Payable 6,000 -
Bonds Payable 210,000 -
Common Stock 245,000 245,000
Retained Earnings 62,000 94,000
Treasury Stock (30,000) -
Total Liabilities and Stockholders’ Equity $510,000 $370,000

During 2016, Arctic sold land for $70,000 cash that had originally cost $45,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in 2016. Accounts payable related to merchandise purchases.
Required:
(a) Calculate the change in cash that occurred during 2016.
(b) Prepare a statement of cash flows using the direct method.