Explain the effect of the following transactions on cash and how they would be shown in the Statement of Cash Flows: (i) The purchase of equipment for Ksh. 2 million with cash proceeds from the issue of a 12 month note payable at Ksh.4 million

(ii). A Ksh. 2.5 dividend per share is proposed by the directors on 7,500,000 issued ordinary shares.

(iii) The disposal of a piece of machinery for Ksh.1.5 million cash. The original purchase price was Ksh. 5 million and the accumulated depreciation as at that date of disposal was Ksh. 2.5 million

(iv) Ksh. 5 million of merchandise inventory purchased on account