Financial Statement (MG-770) Assignment Week 6- Cash Flows Effects of Equity and Debt Financing Please answer the following questions using this document as your template: Name Date 1. Answer question Question 7.4 and 7.14 from pages 568 and 571 of the Text, respectively: Please make sure that all homework is submitted as a Word document. Do not exceed 200 words per answer. 7.4 Identify where the cash flow effect of each of the following transaction is reported in thestatement of cash flows: operating, investing, or financing section. State the direction of each change. State No Effect (NE) if there is no cash flow effect. Place your answers in the left column below boxes 3 and 4. Do not touch the Blue Boxes. Transaction 3. Operating (0), Investing (1), Financing (F) or No Effect (NE) 4. Increase (1), Decrease (D), or No Effect (NE) a Issuance of stock for cash b Issuance of stock for land c Acquisition of treasury stock: d Reissuance of treasury stock: e Declaration of Cash Dividend f Payment of a cash dividend previously declared: g Declaration and issuance of a large stock dividend h Declaration and issuance of a small stock dividend i Granting of Stock Options j Exercise of stock options: k Granting of RSUS 1 Issuance of long-term notes payable: m Issuance of convertible bonds n Conversion of convertible bonds to common stock. o Payment of interest on bonds p Retirement of bonds at book value: q Retirement of bonds at gain r Retirement of bonds at loss. Score 7.14 Historically, technology firms have been the most aggressive users of stock-based compensationin the form of stock options granted to almost all employees of the firms. What is the rationalefor offering stock options as compensations? Why has this form of compensation beenparticularly popular with technology firms in the past? Provide your answer here