Question 1 The following transactions occurred for Mouawad Inc. 1. Inventory costing $295,000 was purchased on account. 2. A new vehicle costing $31,000 was purchased. Mouawad paid $6,900 as a down payment and the remaining $24,100 was financed through a bank loan. 3. Surplus land was sold for $76,000, which was $16,500 more than its original cost. 4. During the year, the company made a payment of $18,000 on its mortgage payable; $2,250 of this amount was for the interest on the debt. 5. Wages of $45,000 were charged to expense as they were incurred. No wages were owing to the employees at the end of the year. 6. The company declared and paid dividends of $34,500 (b) State the amount of any cash flow and whether cash is increased or decreased. Transaction Increases/Decreases Amounts i. 2 . 6