Statement of cash flows—indirect method OBJ. 2 The comparative balance sheet of Pelican Joe Industries Inc. for December 31, 2016 and 2015, is as follows:

Dec. 31, 2016 Dec. 31, 2015 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 490 $ 160 Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 200 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 110 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 450 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 175 Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . . . . . . (60) (30)

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,510 $1,065 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . . . . . . . . . . . . . . . . $ 175 $ 160 Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 —

Common stock, $10 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 50 Paid-in capital: Excess of issue price over par—common stock . . . . . 250 125 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 955 730 Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . $1,510 $1,065 The following additional information is taken from the records:
1. Land was sold for $125.
2. Equipment was acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $325 credit to Retained Earnings for net income.
6. There was an $100 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

b. Was Pelican Joe Industries Inc. net cash flow from operations more or less than net income? What is the source of this difference?