13. Listed below are reporting classifications for a statement of cash flows using the indirectmethod for reporting operating cash flows. Indicate the reporting classification that wouldapply to each of the five transactions described below by placing the letter of the reportingclassification in the space provided by each transaction.

1. Operating activity, no adjustment to net income and Increase in inventory account. ____

2. Operating activity, negative adjustment to net income and Payment of cash dividends. ____

3. Financing cash outflow and Cash sales. ____

4. Investing cash inflowPrepayment of an insurance and premium for six months. ____

5. Operating activity, postive adjustment to net income and Cash proceeds from sale of equipment. ____