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.
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.