I am struggling with this and would like steps provided for studying purposes and help better understanding.

Granite Surfaces specializes in making granite countertops. A new accounting clerk has compiled the following information to prepare the statement of cash flows for the year ended December 31, 2018. Net income for the year was $114,140. Depreciation expense was $15,300. Equipment was sold for a gain of $16,000. Cash proceeds from the sale were $36,000 Equipment was purchased for $250,000. Dividends of $50,000 were paid. Accounts receivable increased by $31,400. Merchandise inventory decreased by $38,700. Accounts payable increased by S41,100. Notes payable increased by $55,000. Stock was sold for $50,000 (also its book value). Cash balance on January 1, 2018 was $114,800. Cash balance on December 31, 2018 was $117,640. b) Prepare a corrected statement of cash flows. The statement of cash flows the accounting clerk prepared is shown below. Granite Surfaces Statement of Cash Flows For the Year Ended December 31, 2018 , Cash Flow from Operating Activities Net Income $114,140 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Depreciation Expense 15,300 Changes in Operating Assets and Liabilities Increase in Accounts Receivable 31400 Decrease in Merchandise Inventory (38,700) Increase in Accounts Payable 41,100 Sale of Equipment 36,000 Purchase of Equipment 1250,000) Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities Proceeds from Notes Payable 55.000 Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities Payment of Cash Dividend (50,000) Proceeds from Issuance of Common Stock 50,000 Net Cash Provided (Used) by Financing Activities (550.760) 55,000 0 Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year 4,240 114.800 $119040 Parta - Identify the problems with the Statement of Cash Flows that the accounting derk prepared. Continued Part b - Prepare a corrected Statement of Cash Flows Granite Surfaces Statement of Cash Flows-corrected For the month ended 12/31/2018 114,140 Granite Surfaces Statement of Cash Flows -as prepared For the month ended 12/31/2018 Cash Flow from Operating Activities Net Income $ Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Depreciation Expense $ Changes in Operating Assets and Liabilities Increase in Accounts Receivable S Decrease in Merchandise Inventory $ Increase in Accounts Payable S Sale of Equipment 5 Purchase of Equipment $ Net Cash Provided (Used) by Operating Activities 15,300 31,400 (38,700) 41,100 36,000 (250,000) $ (50,760) Cash Flow from Investing Activities Proceeds from Notes Payable Net Cash Provided (Used) by Investing Activities $ 55,000 $ 55,000 Cash Flow from Financing Activities Payment of Cash Dividend Proceeds from Issuance of Common Stock Net Cash Provided (Used) by Financing Activities S $ (50,000) 50,000 $ 4,240 Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year $ $ $ 114,800 119,040