Effect of transactions on the statement of cash flows. (Requires coverage of Appendix 11.3.) Refer to the simplified statement of cash flows in Exhibit 4.16. Numbers appear on nine of the lines in the statement. Ignore the unnumbered lines in considering the transactions below. Assume that the accounting cycle is complete for the period and that the firm has prepared all of its financial statements. It then discovers that it has overlooked a transaction. It records the transaction in the accounts and corrects all of the financial statements. For each of the following transactions or events, indicate which of the numbered lines of the statement of cash flows change and the amounts and directions of the changes (increase or decrease). Ignore income tax effects.

a. A firm purchased equity securities costing \(\$ 59,700\) during the period. The firm classifies these as short-term Securities Available for Sale.

b. A firm sold for \(\$ 47,900\) equity securities classified as short-term Securities Available for Sale. The securities originally cost \(\$ 42,200\) and had a book value of \(\$ 44,000\) at the time of sale.

c. A firm sold for \(\$ 18,700\) equity securities classified as short-term Securities Available for Sale. The securities originally cost \(\$ 25,100\) and had a book value of \(\$ 19,600\) at the time of sale.

d. A particular equity security purchased during the period for \(\$ 220,500\) had a market value of \(\$ 201,500\) at the end of the accounting period. The firm classifies the security as a short-term Security Available for Sale. The firm has already recorded the purchase.

e. Assume the same information as in part \(\mathbf{d}\) except that the market value of the security at the end of the accounting period is \(\$ 226,900\).

f. A firm receives a dividend of \(\$ 7,000\) on shares held as a long-term Security Available for Sale and accounted for using the market value method.
g. A firm writes down, from \(\$ 10,000\) to \(\$ 8,000\), Securities Available for Sale accounted for with the market value method.
h. A 40-percent-owned affiliate accounted for using the equity method earns \(\$ 25,000\) and pays dividends of \(\$ 10,000\).
i. A 40-percent-owned affiliate accounted for using the equity method reports a loss for the year of \(\$ 12,500\).
j. A firm amortizes \(\$ 2,000\) of the excess of the purchase price over the book value of the underlying net assets in a 40 -percent-owned affiliate. The excess related to a patent.