Classifi cation of Activities Use the following legend to indicate how each transaction would be reported on the statement of cash fl ows. (Assume that the stocks and bonds of other companies are classifi ed as long-term investments.)

II  Infl ow from investing activities OI  Outfl ow from investing activities IF  Infl ow from fi nancing activities OF  Outfl ow from fi nancing activities CE  Classifi ed as a cash equivalent and included with cash for purposes of preparing the statement of cash fl ows ______ 1. Purchased a six-month certifi cate of deposit ______ 2. Purchased a 60-day Treasury bill ______ 3. Issued 1,000 shares of common stock ______ 4. Purchased 1,000 shares of stock in another company ______ 5. Purchased 1,000 shares of its own stock to be held in the treasury ______ 6. Invested $1,000 in a money market fund ______ 7. Sold 500 shares of stock of another company ______ 8. Purchased 20-year bonds of another company ______ 9. Issued 30-year bonds ______ 10. Repaid a six-month bank loan.

AppendixLO1