On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000.

During the 2016 accounting period, the company had

(1) Net cash inflow from operating activities of $15,600,

(2) Net cash outflow for investing activities of $23,000, and

(3) Net cash outflow from financing activities of $4,500.

Required

a. Prepare a statement of cash flows.

b. Provide a reasonable explanation as to what may have caused the net cash inflow from operating activities.

c. Provide a reasonable explanation as to what may have caused the net cash outflow from investing activities.

d. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities.