Classifying and Analyzing Business Activities Cowell Company had the following business activities during 2018:

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1. Indicate whether each activity should be classified as a cash flow from operating activities. a cash flow from investing activities, a cash flow from financing activities. or a noncash investing and tinancing activity.
2. For each activity that is reported on the statement of cash flows. indicate whether each activity produces a cash inflow or a cash outfow, or has no cash effect.

Problem

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a. Paid cash dividend to shareholders h. Received cash from the sale of merchandise b. Paid cash for inventory i c. Purchased equipment for cash Recorded amortization related to an in- tangible asset d. Paid interest on long-term debt j. e. Acquired land in exchange for commen k. Issued bonds payable in exchange for cash Sold equipment for cash shares 1. Purchased inventory on account Issued common shares for cash Paid salaries to employees Cowell Company uses the indirect method to prepare its statement of cash flows.