Response to the following questions:
1. Use the following information to determine this company's cash flows from investing activities.
a. Sold land costing $315,000 for $400,000 cash, yielding a gain of $15,000.
b. Paid $106,000 cash for a new truck.
c. Equipment with a book value of $80,500 and an original cost of $165,000 was sold at a loss of $34,000.
d. Long-term investments in stock were sold for $94,700 cash, yielding a gain of $15,750.
2. Describe the indirect method of reporting cash flows from operating activities.