Teresa Ramirez and Lenny Taylor are examining the following statement of cash flows for Pacific Clothing Stores first year of operations.

Pacific Clothing Store Statement of Cash Flows For the year ended January 31, 2015
Sources of cash:
From sales of merchandise	$382,000
From sale of capital stock	380,000
From sale of investment	120,000
From depreciation	80,000
From issuance of note for truck	30,000
From interest on investments	8,000
Total sources of cash	1,000,000
Uses of cash:
For purchase of fixtures and equipment	330,000
For merchandise purchased for resale	253,000
For operating expenses (including depreciation)	170,000
For purchase of investment	95,000
For purchase of truck by issuance of note	30,000
For purchase of treasury stock	10,000
For interest on note	3,000
Total uses of cash	891,000
Net increase in cash	109,000

Teresa claims that Pacifics statement of cash flows is an excellent portrayal of a superb first year, with cash increasing $109,000. Lenny replies that it was not a superb first yearthe year was an operating failure and the statement was incorrectly presented.

Discussion question--With whom do you agree, Teresa or Lenny?

Consider the following

How much cash was provided or used by operating activities? (The only noncash items in income are depreciation and the gain from the sale of the investment. The purchase and sale of investment are related.)

How much cash was provided or used by investing activities?

How much cash was provided or used by financing activities?