1) The 2016 Form 10-K of Dow Chemical disclosed a valuation allowance of $1,061 million related to various deferred tax assets. During 2016, the company increased this allowance from $1,000 million reported in 2015.

Quantify the effect that this increase in the allowance had on Dow Chemical's net income in 2016.

2) During the year Company A had the transactions listed below. What amount would the company include in the financing section of the statement of cash flow?

Cash to retire bonds $3,720

Proceeds from bond issuance 7,440

Proceeds from sale of common stock 6,600

Cash to purchase common stock of Company A 3,360

Cash to purchase common stock of Company B 2,400