An income statement for the first year of operations for Pepper Company appears below:

Sales	$	420,000
Dividend revenue		25,000
Interest revenue		14,050
Cost of goods sold		(228,000	)
Salary expense		(23,400	)
Depreciation expense		(70,200	)
Income tax expense		(89,200	)
Net income	$	48,250

Additional information:

1. Accounts payable, end of year, $15,200.
2. Salaries payable, end of year, $8,450.
3. Inventories, end of year, $32,000.
4. Accounts receivable, end of year, $41,500.
5. Interest receivable end of year, $6,500
6. Tax liability end of year, $30,000

Required:-

A) Use the direct approach to calculate the cash provided (used) by operating activities for Pepper Company.

B) For which of the above-mentioned items, the company can have a choice to include it in cash flow from operations or cash flow from investments.