The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

1		Dec. 31, 20Y2	Dec. 31, 20Y1
2	Assets
3	Cash	$485.00	$163.00
4	Accounts receivable (net)	285.00	198.00
5	Inventories	170.00	112.00
6	Land	395.00	454.00
7	Equipment	220.00	180.00
8	Accumulated depreciation-equipment	(58.00)	(32.00)
9	Total assets	$1,497.00	$1,075.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$174.00	$155.00
12	Dividends payable	28.00
13	Common stock, $1 par	105.00	48.00
14	Excess of paid-in capital over par	245.00	123.00
15	Retained earnings	945.00	749.00
16	Total liabilities and stockholders equity	$1,497.00	$1,075.00

The following additional information is taken from the records:

1.	Land was sold for $123.
2.	Equipment was acquired for cash.
3.	There were no disposals of equipment during the year.
4.	The common stock was issued for cash.
5.	There was a $294 credit to Retained Earnings for net income.
6.	There was a $98 debit to Retained Earnings for cash dividends declared.

Required:

a.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.

b.

Was Hirayama Industries Inc.s net cash flows from operations more or less than net income? What is the source of this difference?