Analyzing the Statement of Cash Flows Crew Company recorded the following amounts in the selected accounts below.

Equipment
Jan. 1	80,000
Purchase of equipment	64,000	20,000	Cost of equipment sold
Dec. 31	124,000

Retained earnings
		70,400	Jan. 1
Dividends	1,600	11,200	Net income
		80,000	Dec. 31

Accumulated depreciation
		28,000	Jan. 1
Accumulated depreciation		9,600	Depreciation Expense
on equipment sold	12,000
		25,600	Dec. 31

Common stock
		80,000	Jan. 1
		32,000	Stock issuance
		112,000	Dec. 31

Additional Information 1. Equipment was sold for $10,000 during the year. 2. Dividends payable increased by $400 from the beginning of the year. 3. $8,000 of the equipment purchases were made by issuing common stock.

Required a. Indicate items that would be included in the operating, investing, and financing activities sections of the statement of cash flows, assuming the indirect method in presenting cash flows from operating activities.

• Note: Indicate a subtraction in the statement of cash flows with a negative sign in the Amount column.
• Note: If an item is not included in the statement of cash flows, leave the amount blank (zero) and enter "N/A" in the Cash Flow Section column.

Item	Amount	Cash Flow Section
Accumulated depreciation on equipment sold		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Depreciation expense		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Dividends paid		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Gain on sale of equipment		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Increase in dividends payable		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Issuance of common stock		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Net income		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Purchase of equipment		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Purchase of equipment with common stock		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A
Sale of equipment		Operating activities sectionInvesting activities sectionFinancing activities sectionN/A

b. Indicate any noncash disclosures that would be required based upon the information above.

Note: If an item is not included in the noncash disclosures, leave the amount blank (zero) and enter "N/A" in the item column.

Item	Amount	Cash Flow Section
Accumulated depreciation on equipment soldDepreciation expenseDividends paidGain on sale of equipmentIncrease in dividends payableIssuance of common stockNet incomePurchase of equipmentPurchase of equipment with common stockSale of equipment		Noncash disclosure