CLASSIFYING AND ANALYZING BUSINESS ACTIVITIES CTT Inc. reported the following business activities during 2009:

a. Purchased merchandise inventory for cash

b. Recorded depreciation on property, plant, and equipment

c. Purchased merchandise inventory on credit

d. Collected cash sales from customers

e. Purchased a two-year insurance policy for cash

f. Paid salaries of employees g. Borrowed cash by issuing a note payable h. Sold property, plant, and equipment for cash i. Paid cash dividends j. Purchased property, plant, and equipment for cash k. Issued common stock l. Paid cash for principal amount of mortgage m. Paid interest on mortgage Required:
. Indicate whether each activity should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity. Assume that CTT Inc. uses the indirect method.
. For each activity that is reported on the statement of cash flows, indicate whether each activity produces a cash inflow, a cash outflow, or has no cash effect.