please need help with this question on the cash flows direct method.

is just one question with A and B part

please explain to me how

SWIFTY INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42,400 $33,700 71,000 60,300 29.700 24,300 Accounts Receivable Inventory Equity investments Machinery 22,200 38,900 30.000 18.900 Buildings 67,700 56,700 Land 7,600 7,600 $270,600 $240,400 -/34 Credit Accounts Allowance for Doubtful Accounts $2 200 $1.500 5,700 2,300 Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable 13.700 9,000 35,300 24.700 Accrued Payables 3.400 2,600 Long-Term Notes Payable 20,900 30.800 150.000 125.000 Common Stock, no par Retained Earnings 39.400 44,500 $270,600 $240,400 Additional data ignoring taxes: 1 2. Net income for the year was $41.100 Cash dividends declared and paid during the year were $21.200 A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized 3. 2. 3. Cash dividends declared and paid during the year were $21.200 A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. Equity investments (level of ownership is less than 20%) that cost $25.300 were sold during the year for $29.100. No unrealized gains and losses were recorded on these investments in 2020 Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2.150 4. 5 Swifty's 2020 income statement follows ignoring taxes). $535,500 376,200 Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,850 depreciation and $5,318 bad debts) 159.300 121.200 Income from operations 38.100 $3,800 Other: Gain on sale of investments 3,000 Loss on sale of machinery (800) $41.100 Net Income Question 3 of 3