The following selected information was obtained from a company's comparative balance sheets. Assume the company's 2021 income statement showed depreciation expense of $21,000, a gain on sale of investments of $7,250, and a net income of $64,375.

1. In general, explain the three major types of activities classified on a statement of cash flows.
2. For the company in this example, calculate the net cash flow from operating activities using the indirect method.

			December 31		December 31
			2021		2020
Cash			24,350		12,250
Accounts Receivable		48,200		38,150
Inventory			55,125		58,375
Prepaid Rent			8,250		1,500
Long-Term Investments		26,100		31,525
PPE			159,550		117,225
Accumulated Depreciation		43,225		33,125
Accounts Payable		24,375		27,200
Income Tax Payable		6,250		17,575
Common Stock		126,250		124,125
Retained Earnings		121,125		56,750