The comparative balance sheet of Hirayama Industries Inc. for December $31,20$Y$2$ and $20$Y$1,$ is as follows:

$1$

Dec. $31,20$Y$2$

Dec. $31,20$Y$1$

$2$

Assets

$3$

Cash

$$486\mathrm{.}00$

$$158\mathrm{.}00$

$4$

Accounts receivable $($net$)$

$280\mathrm{.}00$

$195\mathrm{.}00$

$5$

Inventories

$172\mathrm{.}00$

$110\mathrm{.}00$

$6$

Land

$400\mathrm{.}00$

$453\mathrm{.}00$

$7$

Equipment

$223\mathrm{.}00$

$172\mathrm{.}00$

$8$

Accumulated depreciation$-$equipment

$(60\mathrm{.}00)$

$(27\mathrm{.}00)$

$9$

Total assets

$$1,501\mathrm{.}00$

$$1,061\mathrm{.}00$

$10$

Liabilities and Stockholders$$ Equity

$11$

Accounts payable $($merchandise creditors$)$

$$180\mathrm{.}00$

$$161\mathrm{.}00$

$12$

Dividends payable

$32\mathrm{.}00$

$13$

Common stock, $$1$ par

$105\mathrm{.}00$

$45\mathrm{.}00$

$14$

Excess of paid$-$in capital over par

$247\mathrm{.}00$

$121\mathrm{.}00$

$15$

Retained earnings

$937\mathrm{.}00$

$734\mathrm{.}00$

$16$

Total liabilities and stockholders$$ equity

$$1,501\mathrm{.}00$

$$1,061\mathrm{.}00$

The following additional information is taken from the records:

$1.$ Land was sold for $$120.$

$2.$ 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 $$299$ credit to Retained Earnings for net income.

$6.$ There was a $$96$ 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?