Transaction Analysis Following are the transactions of McKinley Company:

a. Sold equipment for $3,600. The original cost was $11,100; the book value is $3,050.

b. Purchased equipment costing $77,000 by paying cash of $27,000 and signing a $50,000 long-term note at 10% interest.

c. Received $8,200 of the principal and $490 in interest on a long-term note receivable.

d. Received $6,300 in cash dividends on stock held as a trading security.

e. Purchased treasury stock for $2,400. (Assume that the cost method is used.)

Complete the following:

1. Prepare journal entries for each of the transactions. (Omit explanations.)

2. For each transaction, indicate the amount of cash inflow or outflow. Then, note how each transaction would be classified on a statement of cash flows.