7. For ASQ Company, classify each of the following items as Operating (OP), Investing (INV), or Financing (FIN) and clearly specify whether it is an inflow (IF) or outflow (OF) of cash. If the transaction is NOT a cash transaction, state No Cash (NC). Solution to the first transaction is provided as an example:

a. Paid $40,000 in salaries. Solution: OP; OF

b. Received $200,000 from a customer.

c. Borrowed $500,000 from a bank.

d. Paid $80,000 in dividends to stockholders.

e. Paid $9,000 in interest for money borrowed from a bank.

f. Purchased a building for $1 million

g. Sold inventory on credit $300,000

h. Paid $230,000 in salaries to employees

i. Bought shares of DRT Co. for $500,000

j. Made a loan of $340,000 to JKU Co.

k. Paid $350,000 to a supplier for goods to be delivered next fiscal year

l. Received $20,000 in dividends from DRT Co.

m. Sold a machine for $30,000

n. Received $3,400 in interest payment from JKU Co.

o. Paid income taxes of $65,000

Please write a cash flow statement as well, thank you