Let us trace the changes in cash for Tradewinds during the year 2020 ?

1- It generated cash flow from operations of $ 1.04 million (no change)

2- It invested $ 700.000 in fixed assets

3- It increased its accounts payable by $25.000.

4- It increased prepayments by $100.000

5- It increased its borrowing from banks by $1 million. This shows up as an

increase in notes payable

6- It paid a $90.000 dividend

7- It increased accrued expenses by $25.000,

8- It invested in inventory worth $1 million

9- It increased taxes payable by $25.000

Calculate sources and uses of cash ?