The following business transactions represent selected cash receipts (cash inflows) and cash payments (cash outflows) of Los Altos Cyclery. A blank form is provided in the Working Papers. Your instructor will guide you through the following problem.

1. Identify each transaction as 

(1) a cash inflow or cash outflow 

(2) as an operating, investing, or financing activity.

a. Receipts from the issue of capital stock.

b. Cash purchase of office furniture.

c. Dividend payment.

d. Advertising expense.

e. Receipts from the sale of merchandise.

f. Cash received from the issue of a mortgage. 

g. Repayment of loan principal. 

h. Purchase of another company's stock.