Jane’s Bookkeeping Services Inc.’s policy is to report all cash inflows from interest and dividends in the investing section and cash outflows arising from interest and dividends in the financing section. Jane’s activities for the year ended December 31, 2016, included the following:

• Declared and issued a two-for-one stock split.
• Converted $300,000 of preferred shares into ordinary shares.
• Accounts payable increased $5,000 during the year.
• Paid $505,000 to repurchase bonds. The book value of the bonds was $500,000.
• Interest expense for the period was $10,000. The interest payable account decreased $2,000.
• Paid a $20,000 cash dividend declared in 2015.
• Distributed a stock dividend valued at $25,000.
• Borrowed $40,000 from the bank. $30,000 of the proceeds were used to pay off a finance lease.

Required:
a. Prepare the cash flows from financing activities section of the statement of cash flows.
b. Identify how the activities listed above that are not financing activities would be reported in the statement of cash flows assuming that the statement is prepared using the indirect method.