Crete Ltd's Policy Is to Report All Cash Flows Arising from from Interest

Crete Ltd.'s policy is to report all cash flows arising from interest and dividends in the operating section. Crete's activities for the year ended December 31, 2021 included the following:
• Income tax expense for the year was $30,000.
• Sold an investment at FVOCI for $45,000. The original cost of the investment was $52,000.
• Depreciation expense for the year was $19,000.
• Sales for the year were $1,030,000.
• Selling and administration expenses for the year totaled $240,000.
• Mamie's cost of goods sold in 2021 was $315,000.
• Interest expense for the period was $12,000. The interest payable account increased $5,000.
• Accounts payable increased $20,000 in 2021.
• Accounts receivable decreased $36,000 in 2021.
• Mamie's inventory increased $13,000 during the year.
• Dividends were not declared during the year; however, the dividends payable account decreased $5,000.
Required:
a. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.
b. Identify how the activities listed above that are not operating activities would be reported in the statement of cash flows.