Answer and Explanation:
The preparation of the cash flow statement is shown below:
Cash Flow From Operating Activities  
Net Income	$70,000
Add: Depreciation expenses	$20,000
Add: Loss on Sale of Land	$7,000
Add: Increase in Accounts Payable	$10,000
Less: Increase in accounts receivable	-$60,000
Less: Increase in prepaid rent	-$10,000
Less: Increase in inventory	-$30,000
Cash Flow Provided by Operating Activities	$7,000 (A)
Cash Flow From Investing Activities  
Purchase of equipment	-$220,000
Cash received from the sale of land	$3,000
Cash Flow Used by Investing Activities	-$217,000 (B)
Cash Flow from Financing Activities  
Payment of dividends	-$40,000
Repayment of notes payable	-$50,000
Issuance of common stock	$250,000
Cash Flow Provided by Financing Activities	$160,000 (C)
Net Decrease in Cash	-$50,000 (A + B + C)
Add: Cash at the beginning of the period  $95,000
Cash at the end of the period  $45,000
We considered the all three activities of the cash flow statements