1. a What would be in the investing activities in the "purchase of equipment" in the statement of cash flows.

b. what would be in the non cash investing and financing activity in the statement of cash flow

Using the direct method

Dr. Cr. Cash Accounts Receivable Less: Allow. For D/A Prepaid Insurance Inventory Land Equipment Less: Accum Dep'n Total Assets $ $ $ $ $ 2020 225,000 338,000 (23,000) 40,000 250,000 2021 200,000 410,000 (20,000) 30,000 265,000 200,000 $ 1,500,000 (550,000) $ 2,035,000 $$$$$$$$$ $ 1,430,000 $ (685,000 $ 1,575,000 Accounts Payable Salaries Payable Notes Payable Deferred Tax Liability Common Stock Additional Paid in Cap. Retained Earnings Treasury Stock Total Liabs. & Equity $ 220,000 $ 70,000 $ $ 40,000 $ 30,000 $ 750,000 $ 465,000 AAAAAAAA 250,000 80,000 200,000 45,000 30,000 750,000 705,000 (25,000 $ 2,035,000 $ 1,575,000 Supplemental Info: Equipment was purchased for $550,000 Equipment was sold at a gain of $20,000. You can determine sales price, cost, and accumulated depreciation. On December 31, Land was obtained in exchange for a Promissory Note bearing interest at 7% Dividends paid were $75,000 Treasury stock was reacquired for $25,000 The company uses the Allowance method to account for bad debts