hi, im having a hard time solving this problem from the book fundamental accounting. its from chapter 16 problem 16.7A. thank you

Problem 16-7A Preparing the statement of cash flows (indirect method) L05,6 CHECK FIGURE: Net cash outflows from investing activities = $160 (thousand) Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information. Paddleboard Inc. Income Statement For Year Ended December 31, 2017 (000s) Revenues: Sales....... 3,784 Cost of goods sold.. 1,536 Gross Profit....................... 2,248 Expenses: Other expenses................ I 880 Depreciation expense 80 Total operating expenses. 960 Profit from operations. 1,288 Income tax expense.... 288 Profit....... 1,000 Click here for a description of Table: Problem 16-7A; Income Statement ***** Paddleboard Inc. Post-Closing Trial Balance (000s) December 31 Account 2017 2016 Cash............. $2,880 $1,840 Receivables............... 2,800 2,080 Merchandise inventory. 2,560 3,040 Property, plant, and equipment 3,040 2,720 Accumulated depreciation 1,920 1,840 Investments ... 2,080 2,240 Accounts payable 1,920 1,440 Accrued liabilities. 320 480 Bonds payable 2,240 2,400 Common shares. 3,040 2,720 Retained earnings..... 3,920 3,040 I Click here for a description of Table: Problem 16-7A; Post-Closing Trial Balance. ***** ************* Page 1039 Other information regarding Paddleboard Inc. and its activities during 2017: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. There were no sales of property, plant, and equipment assets during the year. 4. Investments were sold for cash at their original cost. Required Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2017. Analysis Component: a. Paddleboard Inc. experienced an increase in cash during 2017. Does this necessarily representa favourable situation? Explain why or why not. b. Explain the causes of change in Paddleboard Inc.'s cash situation during 2017