The Following Statements of Financial Position Are Provided for Socrates

The following statements of financial position are provided for Socrates Foods
$\begin{array}{lcc}&\text { End of }&\text { Beginning }\\ & \text { Year } & \text { of Year } \\ \text { Cash and cash equivalents... } & \$ 170,000 & \$ 120,000 \\ \text { Accounts receivable } & 80,000 & 65,000 \\\text { Inventory . } & 140,000 & 130,000 \\\text { Property, plant and equipment (net).... } & 130,000 & 80,000 \\ \text { Total assets } & \$ 520,000 & \$ 395,000 \\\\ \text { Accounts payable (for inventory) } & \$ 65,000 & \$ 35,000 \\ \text { Wages payable } & 120,000 & 110,000 \\ \text { Long-term liabilities } & 95,000 & 70,000 \\ \text { Ordinary shares } & 100,000 & 100,000 \\\text { Retained earnings } & 140,000 & 80,000 \\\text { Total liabilities and owners' equity. } & \$ 520,000 & \$ 395,000 \\\end{array}$

$\text { Selected information from Socrates Foods's current year income statement: }$

$\begin{array}{llr} \text {Sales } &\$1,650,000\\ \text { Cost of goods sold} &840,000\\ \text {Wages expense } &260,000\end{array}$


$\begin{array}{llr} \text { (1) Cash receipts from customers during the year } &\$\underline{\quad\quad}\\ \text { (2) Cash payments for inventory during the year } &\$\underline{\quad\quad}\\ \text {(3) Wages paid to employees during the year } &\$\underline{\quad\quad}\\ \text { (4) In Socrates Foods's statement of cash flows, what amount would be reported as the } &\\ \text { net change in cash and cash equivalents? } &\\\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\$\underline{\quad\quad} \text { (increase/decrease) } &\\\end{array}$

b Socrates Foods recorded the sale of equipment as follows:
$\begin{array}{llr} \text { Cash } &25,000\\ \text { Accumulated Depreciation: Equipment} &20,000\\ \text { Loss on Disposal of Equipment } &15,000\\ \text { Equipment } &&60,000\end{array}$
How would this transaction be reported in Socrates Foods’s statement of cash flows? (Assume the direct method is being used.)