Hi, please answer this by an explanation for each step.

Question: Using the Indirect Method

Review the comparative balance sheets of ABC Corporation shown below:

ABC Corporation
Comparative Balance Sheets
At December 31,
	20X2	20X1	Delta/Difference
Assets:
Cash	40,375	13,000	27,375
Accounts receivable	27,000	45,750	-18,750
Inventory	12,000	9,000	3,000
Investments: hold to maturity	0	3,000	-3,000
Land	15,000	16,250	-1,250
Buildings (net of depreciation)	11,875	23,750	-11,875
Equipment (net of depreciation)	38,000	15,500	22,500
Total Assets	144,250	126,250
Liabilities and Shareholders' Equity:
Accounts payable	15,750	19,250	-3,500
Salaries payable	8,000	10,000	-2,000
Short-term notes payable	50,000	51,000	-1,000
Common stock	50,000	40,000	10,000
Retained earnings	20,500	6,000
Total Liabilities and Equity	144,250	126,250

Additional Information for 20X2:

1. The company recorded net income of $14,500.

2. There were no gains or losses from the disposal of the fully depreciated building that originally cost $120,000.

3. Land costing $1,250 was sold for $2,000.

4. Depreciation on remaining buildings and equipment amounted to $11,875.

5. Investments were sold at cost.

6. ABC Corporation Board of Directors did not declare dividends in 20X2.

Using the balance sheet above answer the following questions using the indirect method.

a) How much is Cash Flows From (or Used by) Operating Activities?

b) How much is Cash Flows From (or Used by) Investing Activities?