Refer to the Simplified Funds Statement for a Period in Exhibit 5.15 on page 174. Ten of the lines in the statement are numbered. Line (2) should be expanded to say "Additions for Expenses and Other Charges Against Income Not Using Funds," and line (3) should be expanded to say "Subtractions for Revenue and Other Credits to Income Not Producing Funds from Operations." Ignore the unnumbered lines in responding to the questions below.

Assume that the accounting cycle is complete for the period and that all of the financial statements have been prepared. Then it is discovered that a transaction has been overlooked. That transaction is recorded in the accounts, and all of the financial statements are corrected. Define funds as working capital. For each of the following transactions or events, indicate which of the numbered lines of the funds statement is affected and by how much. Ignore income tax effects.

a An affiliate accounted for on the equity method earns \(\$ 10,000\) and declares dividends of \(\$ 4,000\).

b An affiliate accounted for on the equity method reports a loss for the year of \(\$ 5,000\).

c Minority interest in income of a consolidated subsidiary is recognized in the amount of \(\$ 20,000\).

d Minority interest in the losses of a consolidated subsidiary is recognized in the amount of \(\$ 8,000\).

e A 100 -percent-owned consolidated subsidiary sold merchandise to the parent company for \(\$ 10,000\). The subsidiary's cost of the goods sold was \(\$ 6,000\). The parent sold the merchandise for \(\$ 12,000\). An elimination of the intercompany transaction is made.

f The investment in the portfolio of equity securities accounted for with the lower-of-costor-market method is written down from \(\$ 10,000\) to \(\$ 8,000\).

g A dividend of \(\$ 7,000\) is declared on shares held as an investment and accounted for with the lower-of-cost-or-market method.
h The market value of the portfolio of equity securities accounted for as current assets (Marketable Securities) is \(\$ 5,000\) less than the net amount shown for the same portfolio on the balance sheet at the end of the previous accounting period. The amount in the allowance contra to the Marketable Securities account is changed.
i The market value of the portfolio of marketable equity securities in the preceding part g increases \(\$ 3,000\) by the end of the next accounting period. The amount in the allowance contra to the Marketable Securities account is changed.