Cash Flows From Operating Activities. The Brown Company provided the following data from its 1998 activities:

\section*{Additional data:}
Equipment costing \(\$ 30,000\) with a book value of \(\$ 18,000\) was sold for \(\$ 10,000\). Investors swapped \(\$ 10,000\) of bonds payable for \(\$ 10,000\) of common stock Required:
1. What was cash flow from operations in 1998?
2. What items would Brown report in its investing and financing activities sections of its statement of cash flows in 1998?
3. If Brown has a significant noncash transaction, explain why it should appear on the statement of cash flows.

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Cash Accounts receivable 68,000 Comparative Balance Sheets 12/31/98 12/31/97 $ 34,000 $ 50,000 Increase (Decrease) $(16,000) 8,000 60,000 Inventory.... 90,000 99,000 (9,000) Plant and equipment. 240,000 180,000 Accumulated depreciation..... (80,000) (65,000) Total... $352,000 $324,000 60,000 (15,000) $ 28,000 Accounts payable... $ 55,000 $ 66,000 Bonds payable... 90,000 50,000 Common stock 70,000 60,000 Retained earnings. 137,000 148,000 $(11,000) 40,000 10,000 (11,000) Total... $352,000 $324,000 $ 28,000