Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1. Net income for the year was $570. During the year, equipment costing $800 was purchased when the company paid cash of $640 and issued common shares worth $160. Near the end of the year, equipment costing $60 with accumulated depreciation of $16 was sold for $54. At the end of the year, accounts receivable was $250, accounts payable was $36 and accumulated depreciation was $144. A bank loan of $140 was received during the year to help finance operations. At the end of the year, the bank had been paid $52 including $14 of interest. Based on the above information, please prepare the statement of cash flows for the year ended December 31, 20X1 using the indirect method.

Part B: How does the information in the statement of cash flows help the user of the financial statement?