Identify cash flows. (LO 1)

Given the following cash transactions, classify each as a cash flow from:

(a) operating activities,

(b) investing activities, or

(c) financing activities.

a. Principal payment to the bank for a loan

b. Collection from customers to whom sales were previously made on account

c. Collection from customers for cash sales

d. Collection for sale of land that had been purchased as a possible factory site

e. Petty cash used to pay for doughnuts for staff