What effect would each of the following transactions have on the statement of cash flows? 1. The sum of $8,000 in cash was received from the sale of used office equipment that originally cost $15,000. Depreciation of $10,000 had been taken on the asset up to the date of the sale. The resulting $3,000 gain was shown on the income statement. (You may select more than one answer)

• The $3,000 gain should be subtracted from net income in the operating section of the cash flow statement.unanswered
• The $3,000 gain should be subtracted from net income in the financing section of the cash flow statement.unanswered
• The $3,000 gain should be subtracted from net income in the investing section of the cash flow statement.unanswered
• The $8,000 cash received is reported as a cash inflow in the investing section of the cash flow statement.unanswered
• The $8,000 cash received should be reported in the operating section of the cash flow statement.unanswered
• The $8,000 cash received should be reported in the financing section of the cash flow statement.unanswered

2. The sum of $65,000 in cash was received from the sale of investments in the stock of another corporation. The stock had a book value of $70,000. The $5,000 loss on the sale was shown on the income statement. (You may select more than one answer.)

• The loss of $5,000 is added to net income in the operating section of the cash flow statement.unanswered
• The loss of $5,000 should be added to net income in the financing section of the cash flow statement.unanswered
• The loss of $5,000 should be added to net income in the investing section of the cash flow statement.unanswered
• The $65,000 cash received is reported as a cash inflow in the investing section of the cash flow statement.unanswered
• The $65,000 cash received should be reported as a cash flow in the operating section of the cash flow statement.unanswered
• The $65,000 cash received should be reported as a cash flow in the financing section of the cash flow statement.