Cash Flow Transactions (8 marks) REQUIRED For each of the following transactions, indicate what section of the cash flow statement each would be shown under, for what dollar amount, and whether it would be a source or use of cash on the statement (if cash increases. write "ADD": if cash decreases write "LESS"). If a transaction should not be shown on the cash flow statement, write "NONE." The 3 sections on a cash flow statement are OPERATING, INVESTING, and FINANCING activities. A transaction can involve more than one section of the statement and can have more than one amount. You can use the template provided to fill in your answer. An example has been done for you. EXAMPLE: Purchased a new machine for $40,000 cash. ANSWER: INVESTING Deduct $40,000 1. A dividend was declared and paid for $30,000. 2. Old equipment with a book value of $25,000 was sold for a loss of $5,000 3. Elon Co. has a significant influence on Musk Co. and uses the Equity Method of accounting. Elon Cy's share of Musk Co.'s net income for the year is $50,000 and the following entry was correctly made: DEBIT Investment in Musk Co. 50,000 CREDIT Investment income 50,000 4. Purchased land costing $500,000 and paid by giving the seller common shares. 7 A !!! III Old equipment with a book value of $25,000 was sold for a loss of $5,000