Analyzing the Statement of Cash Flows K. Crew Company recorded the following amounts in the selected accounts below. Equipment Retained earnings Jan. 1, 2020 200,000 176,000 Jan 1, 2020 Purchase of equipment 160,000 50,000 Cost of equipment sold Dividends 4,000 28,000 Net income Dec 31, 2020 310,000 200,000 Dec 31, 2020 Accumulated depreciation 70,000 Jan 1, 2020 Accumulated depreciation 24,000 Depreciation Expense on equipment sold 30,000 64,000 Dec 31, 2020 Common stock 200,000 Jan 1, 2020 80,000 Stock issuance 280,000 Dec 31, 2020 Additional Information 1. Equipment was sold for $25,000 during the year. 2. Dividends payable increased by $1,000 from the beginning of the year. 3. $20,000 of the equipment purchases were made by issuing common stock. 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 statement of cash flows with a negative sign in the Amount column. Note: If an item is not included in the statement of cash flows, leave the amount blank (zero) and enter "N/A" in the Cash Flow Section column. Cash Flow Section Item Amount Accumulated depreciation on equipment sold $ Depreciation expense Dividends paid Gain on sale of equipment Increase in dividends payable Issuance of common stock Net income Purchase of equipment Purchase of equipment with common stock Sale of equipment 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 Amount Cash Flow Section Noncash disclosure