XYZ Corporation has provided the following data for the year:

• Net income: $250,000
• Depreciation: $40,000
• Increase in accounts receivable: $20,000
• Decrease in inventory: $10,000
• Increase in accounts payable: $15,000
• Purchase of new equipment: $50,000

Requirements:

(a) Prepare the cash flow from operating activities. (b) Calculate the cash flow from investing activities. (c) Determine the net cash flow for the year. (d) Explain the significance of each cash flow component.