The statement of financial position of Lim Garden Supplies Inc. for December 31, 2016 and 2015, is as follows:

The statement of income for the year ended December 31, 2016, is as follows

The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $196,000 cash.
d. The common shares were issued for cash.
e. There was a $144,000 debit to Retained Earnings for cash dividends declared.
f. The income taxes expense was paid in cash.
Instructions
1. Prepare a statement of cash flows using the indirect method of presenting cash flows from operating activities.
2. How does Lim Garden Supplies' cash flow compare to its net income? Summarize the changes that have caused the difference.