Teresa Ramirez and Lenny Taylor are examining the following statement of cash flows for Pacific Clothing Store’s first year of operations. Pacific Clothing Store Statement of Cash Flows For the year ended January 31, 2015 Sources of cash: From sales of merchandise $382,000 From sale of capital stock 380,000 From sale of investment 120,000 From depreciation 80,000 From issuance of note for truck 30,000 From interest on investments 8,000 Total sources of cash 1,000,000 Uses of cash: For purchase of fixtures and equipment 330,000 For merchandise purchased for resale 253,000 For operating expenses (including depreciation) 170,000 For purchase of investment 95,000 For purchase of truck by issuance of note 30,000 For purchase of treasury stock 10,000 For interest on note 3,000 Total uses of cash 891,000 Net increase in cash 109,000 Teresa claims that Pacific’s statement of cash flows is an excellent portrayal of a superb first year, with cash increasing $109,000. Lenny replies that it was not a superb first year—the year was an operating failure and the statement was incorrectly presented. Discussion question--With whom do you agree, Teresa or Lenny? Consider the following— How much cash was provided or used by operating activities? (The only noncash items in income are depreciation and the gain from the sale of the investment. The purchase and sale of investment are related.) How much cash was provided or used by investing activities? How much cash was provided or used by financing activities?