In order to prepare the statement of cash flows for Fark Corp. for 2019, the accountant has compiled the following data regarding cash flows:

Purchases of marketable securities	48,000
Proceeds from sales of marketable securities	75,000
Interest and dividends received	19,500
Interest paid	18,000
Taxes paid	43,500
Dividends paid	27,000
Proceeds from short-term borrowing	31,500
Payments to settle short-term debts (principal repaid)	36,000
Cash received from customers	681,000
Cash paid to suppliers and employees	531,000
Proceeds from issuing capital stock	118,500
Purchases of plant assets	201,000
Proceeds from sales of plant assets	58,500
Cash and cash equivalents, beginning of year	73,500

Instructions: a. Based on the above information, prepare a complete statement of cash flows for Falk Corp, showing the computation of net cash flows from operating activities by the direct method. b. State the purposes of a statement of cash flows. c. Explain the relationship between the statement of cash flows and the income statement.

d. Discuss some strategies for improvements in cash flow.