A comparative balance sheet for Rocker Company appears below:

ROCKER COMPANY

Comparative Balance Sheet

Dec. 31, 2014 Dec. 31, 2013

Assets

Cash $ 34,000 $11,000

Accounts receivable 18,000 13,000

Inventory 25,000 17,000

Prepaid expenses 6,000 9,000

Long-term investments -0- 17,000

Equipment 60,000 33,000

Accumulated depreciationequipment (20,000) (15,000)

Total assets $123,000 $85,000

Liabilities and Stockholders' Equity

Accounts payable $ 17,000 $ 7,000

Bonds payable 36,000 45,000

Common stock 40,000 23,000

Retained earnings 30,000 10,000

Total liabilities and stockholders' equity $123,000 $85,000

Additional information:

1. Depreciation expense is $5,000.

2. Net income for the year ending December 31, 2014 was $35,000.

3. Long-term investments that had a cost of $17,000 were sold for $14,000.

4. Cash dividends of $15,000 were declared and paid during the year.

Instructions

1. Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. Upload the statement as question #______.

2. Answer the following questions:

a) What is the net cash flow provided or used by operating activities?

b) What is the net cash flow provided or used by investing activities?

c) What is the net cash flow provided or used by financing activities?

d) What is the net increase or decrease in cash?