Analyzing the Cash Flow Statement Crew Company recorded the following amounts in the selected accounts below. Jan. 1 Equipment 100,000 Purchase of equipment 80,000 25,000 Cost of equipment sold Dec. 31 155,000 Dec. 31 Accumulated depreciation Retained earnings 35,000 Jan. 1 Common stock 88,000 Jan. 1 Dividends 2,000 14,000 Net income 100,000 Dec. 31 Accumulated depreciation on equipment sold 12,000 Depreciation Expense 15,000 32,000 100,000 Jan. 1 40,000 Stock issuance 140,000 Dec. 31 Additional Information 1. Equipment was sold for $12,500 during the year. 2. Dividends payable increased by $500 from the beginning of the year. 3. $10,000 of the equipment purchases were made by issuing common stock. Required a. Indicate items that would be included in the operating, investing, and financing activities sections of the statement of cash flows, assuming the indirect method in presenting cash flows from operating activities. Note: Indicate a subtraction in the cash flow statement with a negative sign in the Amount column. Note: If an item is not included in the cash flow statement, leave the amount blank (zero) and enter "N/A" in the Cash Flow Section column. Item Amount Cash Flow Section Accumulated depreciation on equipment sold $ 15000 Operating activities section Depreciation expense $ 12000 N/A Dividends paid $ 2000 Operating activities section + Gain on sale of equipment $ -12500 Investing activities section Increase in dividends payable $ 0 N/A Issuance of common stock $ 40000 Financing activities section Net income $ 14000 Operating activities section Purchase of equipment $ Purchase of equipment with common stock $ 80000 Investing activities section 10000 N/A Sale of equipment $ 12500 Investing activities section b. Indicate any noncash disclosures that would be required based upon the information above. Note: If an item is not included in the noncash disclosures, leave the amount blank (zero) and enter "N/A" in the item column. Item Increase in dividends payable Amount Cash Flow Section = $ 500 Noncash disclosure Check