Classifying Lessee Transactions in Statement of Cash Flows: On January 1, Lessee Inc. signs a three-year non-cancelable agreement to lease equipment (no residual value) from Lessor Inc. The lessee accounts for the lease as a finance lease, which requires three lease payments of $34,972 each, payable January 1 and December 31 of this year, and December 31 of next year. The lessors implicit rate is 5%, which is known to the lessee, resulting in the recording of a right-of-use asset and lease liability of $100,000 (PV(0.05,3,34972,0,1)) at the inception of the lease. As a result, the lessee recorded the following entries in the current year (amounts rounded).

The company uses the indirect method to report cash flows from operating activities. Based on these transactions, indicate any adjustments to net income required in the operating activities section, and any cash flows in the investing and financing sections of the current year statement of cash flows. - Note: Indicate a subtraction in the cash flow statement with a negative sign in the Amount column. - Note: Do not use a negative sign with your answer below