Consider the following income statement:

Net income $200,000
Depreciation expense 15,000
Decrease in inventory 12,000
Increase in accounts receivable 1,400
Increase in interest payable 1,600
Amortization of bond discount 3,000
Increase in accounts payable 7,000
Cash dividends paid 20,000

Determine the following:
(1) Increase (decrease) in operating assets.
(2) Increase (decrease) in operating liabilities.
(3) Net cash flows from operations.