Please see the attached image with problem to solve. Please give step by step explanation and be thorough in showing work. Need answer to A and B. Thank you!

26. Preparing a statement of cash flows from changes in balance sheet accounts. The compara- tive balance sheets of Incloud Airlines show the following information for a recent year (amounts in thousands of US$): Change Amount Direction Cash . . $ 40,3083 Increase Accounts Receivable . . 15,351 Decrease Inventories . . . 15,117 Increase Prepayments . . 16,776 Increase Property, Plant, and Equipment (at Cost) 1,134,6440 Increase Accumulated Depreciation . ..... 264,088 Increase Other Non-operating Assets . . 8,711 Increase Accounts Payable . . .. 560 Decrease Other Current Liabilities . . 114,596 Increase Long-Term Debt . .... 244,285 Increase Other Non-operating Liabilities . 140,026 Increase Common Stock ... . 96,991 Increase Retained Earnings . . .. 340,879 Increase Cash was $378,511 at the beginning of the year and $418,819 at the end of the year. "Incloud Airlines did not sell any property, plant, and equipment during the year. 'Net income was $474,378. a. Prepare a statement of cash flows for Incloud Airlines for the year. Treat changes in non-operating assets as investing transactions and changes in non-operating liabilities as financing transactions. b. Discuss briefly the pattern of cash flows from operating, investing, and financing activi- ties for Incloud Airlines for the year