E5-13 (L04) (Statement of Cash FlowsClassifications) The major classifications of activities reported in the statement of cash

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E5-13 (L04) (Statement of Cash Flows—Classifications) The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as:
1. Operating activity—add to net income.
2. Operating activity—deduct from net income.
3. Investing activity.
4. Financing activity.
5. Reported as significant noncash activity.
The transactions are as follows.

(a) Issuance of common stock. (h) Payment of cash dividends.

(b) Purchase of land and building. (i) Exchange of furniture for office equipment.

(c) Redemption of bonds. (j) Purchase of treasury stock.

(d) Sale of equipment. (k) Loss on sale of equipment.

(e) Depreciation of machinery. (l) Increase in accounts receivable during the year.

(f) Amortization of patent. (m) Decrease in accounts payable during the year.
(g) Issuance of bonds for plant assets.

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