The records of Neon Corp. provided the following data:

a. Purchased capital asset for $340,000; paid cash.

b. Depreciation expense, $134,000.

c. Sold a capital asset for $68,000 cash; original cost, $180,000, accumulated depreciation, $140,000.

d. Purchased capital asset for $340,000; signed a long-term note with the vendor for $300,000 and paid $40,000 in cash.

e. Wages expense, $336,000; wages payable decreased, $20,000.

f. Sales revenue, $2,600,000; accounts receivable decreased, $430,000.

g. Borrowed $214,000 cash from the bank.

h. Declared a cash dividend, $132,000; dividends payable decreased by $4,000.

i. Paid a note payable, $300,000 principal plus $12,000 interest.

j. Converted long-term bonds into common shares, $8,000,000.

Required:

The company uses the indirect method of presentation in the operating activities section. For each of the above items, give:

1. The SCF category (operating, investing, financing), or indicate that the item is excluded from the SCF.

2. List the items that would appear on the SCF for a–j, above.