Response to the following questions:
1. The board of directors declared cash dividends totaling $80,000 during the current year. The comparative balance sheet indicates dividends payable of $25,000 at the beginning of the year and $20,000 at the end of the year. What was the amount of cash payments to stockholders during the year?
2. An analysis of the general ledger accounts indicates that office equipment, which cost $30,000 and on which accumulated depreciation totaled $10,000 on the date of sale, was sold for $25,000 during the year. Using this information, indicate the items to be reported on the statement of cash flows.