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 "ADDIf 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 S40,000 cash. ANSWER: INVESTING Deduct 540,000 1. A stock dividend for $80,000 was declared and distributed 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 Co's share of Musk Cos net income for the year is 550,000 4. Land costing $500,000 was purchased by issuing preferred shares 1 Effects of transactions on cash flow DOLLAR EFFECT CATEGORY TRANSACTION INVESTING Deduct $40,000 EXAMPLE: Purchased a new machine for $40,000 cash. 1. A stock dividend for $80,000 was declared and distributed. 2. Old equipment with a book value of $25,000 was sold for a loss of $5,000. 1. A stock dividend for $80,000 was declared and distributed. 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 Co.'s share of Musk Co.'s net income for the year is $50,000 4. Land costing $500,000 was purchased by issuing preferred shares