During 2005. Oscar Company purchased some of the 90.000 shares of common stock, par S8. of Selma. Inc.. as a long-term investment. The annual accounting period for each company ends December 31. The following transactions occurred during 2005:

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Jan. 7 Purchased 40.500 shares of Selma stock at $32 per share. Dec. 31 Received the 2005 financial statement of Selma, which reported net income of $200,000. 31 Selma declared and paid a cash dividend of $3 per share. 31 Determined that the current market price of Selma stock was $40 per share. Indicate how the Operating Activities and Investing Activities sections of the cash flow statement will be affected by each transaction.