Classifying cash flows The listed items were taken from a listed company’s statement of cash flows. Classify each item as operating, investing or financing. For each item state whether cash is increasing or decreasing.

1 Cash received from issue of share capital 2 Cash received from customers 3 Purchases of property, plant and equipment 4 Cash paid to suppliers 5 Cash paid to employees 6 Cash borrowed from the bank 7 Cash proceeds received from sale of investment in another company 8 Income taxes paid 9 Repayment of loan principal 10 Dividend paid