Determining Investing and Financing Activities The following items are relevant to the preparation of a statement of cash flows for Pier Imports Inc. 1. Comparative balance sheets show a decrease of $6,000 in accrued utilities payable for the current year. 2. Nontrade short-term notes payable to banks increased $80,000 during the current year due to new borrowings. 3. The following end-of-year adjusting entry was recorded. No other interest-related transactions or entries occurred during the year. Interest Expense Premium on Bonds Payable Interest Payable 12,000 800 12,800 4. $500 payment was made to reduce the principal balance of a nontrade loan from a bank. 5. Gross equipment account increased $20,000 during the year, accumulated depreciation increased $8,000, and depreciation expense for the period is $10,000. One item of equipment (cost $10,000, accumulated depreciation $2,000) was sold during the year; a gain of $1,000 on the sale was recognized. 6. Purchase of treasury stock, $30,000. 7. Distribution of cash dividends, $5,000. 8. Sale of available-for-sale debt securities for $16,000, at a loss of $3,000. Note: For the following questions, indicate a net cash outflow with a negative sign. a. Determine the amount of net cash flows that would be reported in the investing section of the statement of cash flows. $ b. Determine the amount of net cash flows that would be reported in the financing section of the statement of cash flows. $