Increase in inventory $25,000 Decrease in accounts receivable 414,000 Decrease in accounts payable 150,000 Net Income 65,000 Proceeds on sale of capital assets 50,000 Gain on sale of capital assets 10,000 Purchase of equipment 88,000 Repayment of debt 45,000 Depreciation Expense 24,000 a) Prepare the operating section of the cash flow statement. b) How would you explain to Archie the difference between the three sections of a cash flow statement?