The following (summary) statement of cash flows has been provided by Sigma Designs, which specializes in diversified graphic systems, document imaging, and multimedia markets.

Sigma Designs, Inc.
Statement of Cash Flows (abbreviated)
For the Years Ended January 31, 1993 and 1992 (Dollars in Thousands)
1993 1992 Cash flows from operating activities:
Net loss $(7,166) $(3,443)
Summary of adjustments to net loss activities (659) 4,731 Net cash provided by (used for) operating activities (7,825) 1,288 Cash flows from investing activities:
Purchases of marketable securities (25,367) (28,598)
Sales of marketable securities 30,518 23,189 Equipment additions (801) (702)
Software development costs (capitalized) (551) (1,070)
Other asset transactions (339) 87 Net cash provided by (used for)
investing activities 3,460 (7,094)
Cash flows from financing activities:
Common stock sold 312 329 Repayment of long-term debt (39) (35)
Other financing transactions (105) 24 Net cash provided by (used for)
financing activities 168 318 Decrease in cash and equivalents $(4,197) $(5,488)
Required

a. Explain and discuss each item that resulted in a change in cash for Sigma Designs.

b. Based on this information, evaluate Sigma’s future prospects.

c. Indicate whether Sigma used the direct or indirect method to calculate its cash flows from operations. How can you tell?