RST Ltd. had a net income of $25,000, depreciation expense of $3,000, an increase in accounts receivable of $2,000, a decrease in accounts payable of $1,500, purchased equipment for $5,000, issued common stock for $7,000, and paid dividends of $2,500.

Tasks:

1. Prepare the operating activities section using the indirect method.
2. Prepare the investing activities section.
3. Prepare the financing activities section.
4. Calculate the net increase or decrease in cash.

###question_divider###