All$-$Star Automotive Company experienced the following accounting events during Year $3$:

Performed services for $$14,500$ cash.

Purchased land for $$7,500$ cash.

Hired an accountant to keep the books.

Received $$35,000$ cash from the issue of common stock.

Borrowed $$9,000$ cash from State Bank.

Paid $$4,500$ cash for salary expense.

Sold land for $$9,000$ cash.

Paid $$3,500$ cash on the loan from State Bank.

Paid $$4,700$ cash for utilities expense.

Paid a cash dividend of $$1,500$ to the stockholders.

Required

a$.$ Indicate how each of the events would be classified on the statement of cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

b$.$ Prepare a statement of cash flows. Assume All$-$Star Automotive had a beginning cash balance of $$9,500.($The company has additional accounts, but they are not needed for this question.$)$Statement of Cash Flows

For the Year Ended December $31,$ Year $3$