The Ladies Store presented the following statement of cash flows for the year ended December 31, 2011:

Cash received:

From customers $150,000

From sales 100,000

From issuance of notes payable 40,000

From interest on bonds 5,000

Total Cash received $295,000

Cash Payments:

For merchandise purchases $110,000

For purchase of truck 20,000

For purchase of investment 80,000

For purchase of equipment 45,000

For interest 2,000

For income taxes 15,000

Total Cash payments 272,000

Net increase in cash 23,000

a. Prepare a statement of cash flows in proper form

b. Comment on the major flows of cash.