The following is the income statement for Sommer Ltd at 31 December 2023. All numbers are expressed in thousands of Euros.

Sommer Ltd
Income Statement
Revenue:
Net sales	18,000
Interest revenue	240
Gain on sales of plant assets	204
Total revenue and gains		18,444
Costs and expenses:
Cost of goods sold	9,720
Operating expenses (including depreciation of 1,800)	7,440
Interest expense	252
Income tax expense	600
Loss on sales of marketable securities	72
Total costs, expenses, and losses		18,084
Net income		360

The following information is also available:

1. The cash amounted to 800 at the beginning of the year and to 1,308 at the end of the year.
2. Accounts receivables decreased by 100.
3. Interest receivable increased by 2.
4. Inventory increased by 10, and accounts payables to suppliers of merchandise increased by 100.
5. Short-term prepayments of operating expenses increased by 3, and accrued liabilities for operating expenses decreased by 30.
6. The liability for accrued interest payables increased by 10 during the year.
7. The liability for accrued income taxes payable decreased by 5.

1. The following schedule summarizes the total debit and credit entries in other balance sheet accounts during the year:

	Debit Entries	Credit Entries
Marketable Securities	360	228
Notes Receivable (cash loans made to borrowers)	264	168
Plant Assets (see information 9)	3,000	216
Notes Payable (short-term borrowing)	552	492
Capital Stock	-	120
Additional Paid-in CapitalCapital Stock	-	960
Retained Earnings (see information 10)	720	360

1. The 216 in credit entries represents the book value of all plant assets sold during the year. Concerning the acquisitions, Sommer Ltd paid 70% of the assets purchased in 2023. The rest will be paid in 2024.
2. The 720 debit to Retained Earnings represents dividends declared and paid during the year. The 360 credit entry represents the net income shown in the income statement.
3. All other investing and financing activities were cash transactions.

To answer question 2, you are required to do the following:

1. Prepare the cash flow statement for Sommer Ltd. You are free to choose whether to use the direct or indirect method to present the cash flow from operating activities. However, you must clearly state which method you have decided to use.

2. Explain, in general, the information provided to investors by the cash flows from operating activities, investing activities and financing activities. Discuss, in general, how positive/negative figures, for each category, can be interpreted.