The Pas Ltd. was organized on August 1, 2016 with a cash investment of $1,000,000 by its shareholders. The Pas arranged a mortgage with a local lender for $600,000 and purchased a warehouse for $1,200,000.
During its fiscal year ended July 31, 2017, The Pas collected $425,000 in cash from customers, paid $270,000 in cash for operating expenses, and paid $60,000 in cash dividends to its shareholders. At the end of the year it invested $300,000 in the shares of another corporation.

Required:
a. Classify each of the cash flows described above as operating, investing, or financing.
b. Organize the cash flows into a statement of cash flows.
c. Explain what your statement of cash flows tells you that an income statement doesn’t.