Effect of Transactions Under the Equity Method Coca-Cola's 2002 financial statements revealed that it has extensive equity method investments including Coca-Cola Hellenic Bottling Company, Coca-Cola Amatil Limited, and Coca-Cola Enterprises. In total, the balance sheet showed equity investments of $5,128 million at December 31, 2001 and $4,737 million at December 31, 2002. During 2002 Coca-Cola included equity income of $384 million in its income statement, and its cash flow statement indicates that approximately $128 million in dividends was received from equity investees. 1. Compute the approximate reduction in Coca-Cola's equity investment asset that cannot be explained by either increases due to its share in earnings or decreases due to dividends received. You may find a T-account will help your analysis. 2. Coca-Cola uses the indirect method to construct its cash flow statement. Indicate how these trans- actions with equity investees would be shown in the statement of cash flows.