Given the following information for Rat Rack Incorporated prepare their statement of cash flows for ...

Rat Rack Incorporated
   Cash Flow Statement
   For the Year Ended December 31, 2014

Cash flows from operating activities:
Net income      $50,000
Add (subtract) items that affect net income and
cash flows differently:
   Deprecation   $30,000
   Change in accounts receivable   10,000
   Change in inventory   27,000
   Change in prepaid expenses   (17,000)
   Change in accounts payable   (27,000)
   Change in accrued liabilities   (71,000)   (48,000)
   Net cash inflow from operating activities      $2,000

Cash flows from investing activities:
Collections on Note Receivable   188,000
Net cash inflow from investing activities      188,000

Cash flows from financing activities:
Issuance of common shares   $20,000
Payment of dividends   (25,000)
Net cash inflow from financing activities      (5,000)
Net increase in cash      $185,000
Cash balance: January 1, 2014      365,000
Cash balance: December 31, 2014      $550,000