CLASSIFICATION OF CASH FLOWS Patel Company reported the following items in its statement of cash flows presented using the indirect method.

a. Sold equipment for cash

b. Issuance of common stock

c. Cash paid for interest

d. Repayment of principal on long-term debt

e. Loss on sale of equipment.

f. Receipt of cash dividend on investment Required:

Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, or a cash flow from financing activities.

Cornerstone Exercise