The following financial information is provided for LMN Retail Ltd for the year ended 31 December 2023:

Net income: $50,000

Depreciation expense: $8,000

Increase in accounts receivable: $5,000

Decrease in inventory: $3,000

Increase in accounts payable: $2,000

Purchase of equipment: $20,000

Issued common stock for cash: $10,000

Paid dividends: $5,000

Required: a. Prepare a statement of cash flows using the indirect method for the year ended 31 December 2023. b. Explain the significance of each section of the cash flow statement and its importance in managerial decision-making.