What effect would each of the following transactions have on the statement of cash flows?
1. The sum of $5,000 in cash was received from the sale of used office equipment that originally cost $15,000. Depreciation of $12,000 had been taken on the asset up to the date of the sale. The resulting $2,000 gain was shown on the income statement.
2. The sum of $77,000 in cash was received from the sale of investments in the stock of another corporation. The stock had a book value of $90,000. The $13,000 loss on the sale was shown on the income statement.