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 company uses the direct method in the Operating Activities section.)

IO  Infl ow from operating activities OO  Outfl ow from operating activities 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 NR  Not reported in the body of the statement of cash fl ows but included in a supplemental schedule ______ 1. Collected $10,000 in cash from customers’ open accounts for the period ______ 2. Paid one of the company’s inventory suppliers $500 in settlement of an open account ______ 3. Purchased a new copier for $6,000; signed a 90-day note payable ______ 4. Issued bonds at face value of $100,000 ______ 5. Made $23,200 in cash sales for the week ______ 6. Purchased an empty lot adjacent to the factory for $50,000; the seller of the land agrees to accept a fi ve-year promissory note as consideration ______ 7. Renewed the property insurance policy for another six months; cash of

$1,000 is paid for the renewal ______ 8. Purchased a machine for $10,000 ______ 9. Paid cash dividends of $2,500 ______ 10. Reclassifi ed as short-term a long-term note payable of $5,000 that is due within the next year ______ 11. Purchased 500 shares of the company’s own stock on the open market for

$4,000 ______ 12. Sold 500 shares of Nike stock for book value of $10,000 (they had been classifi ed as long-term investments)

AppendixLO1