Question #3: H&M, Inc. reported the following data:

Net income	$200,000
Depreciation expense	25,000
Loss on disposal of equipment	30,000
Increase in accounts receivable	20,000
Decrease in accounts payable	(8,000)

Requirement: Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

Question #4: Explain the difference between static and flexible budgets. Provide a detailed example of how companies can use flexible budgets for decision making.