(7) In 2020, Terry Company purchased the equity securities costing $3,000 and classified them as FVTPL investment (cash purchase). In the same year, Terry Company also purchased bonds costing $1,000 and classified bond investments as FVOCI investment (cash purchase). On December 31, 2020, Terry Company received the cash dividend payment of $300 from these FVTPL equity securities and received $50 cash interest payment from bond investments. Terry prepares its statement of cash flows using the direct method. Terry also classifies the receipt of cash dividends and cash interests as the operating activity of cash flow statements. Which of the following represents the effect of these transactions on the statement of cash flows for Terry Company for the year ending December 31, 2020? Operating Activities Investing Activities Cash flows Cash flows $350 increase $4,000 decrease. $2,650 decrease $1,000 decrease. $3,650 decrease No effect. $650 decrease $3,000 decrease. a. b. c. d