All$-$Star Automotive Company experienced the following accounting events during Year $2$:

Performed services for $$25,000$ cash.

Purchased land for $$6,000$ cash.

Hired an accountant to keep the books.

Received $$50,000$ cash from the issue of common stock.

Borrowed $$5,000$ cash from State Bank.

Paid $$14,000$ cash for salaries expense.

Sold land for $$9,000$ cash.

Paid $$2,000$ cash on the loan from State Bank.

Paid $$2,800$ cash for utilities expense.

Paid a cash dividend of $$5,000$ to the stockholders.

Required

Indicate how each of the events would be classified on the statement of cash flows by selecting operating activities, investing activities, or financing activities.

Prepare a statement of cash flows. Assume All$-$Star Automotive had a beginning cash balance of $$9,000.($The company has additional accounts, but they are not needed for this question.$)$ALL$-$STAR AUTOMOTIVE COMPANY

Statement of Cash Flows

For the Year Ended December $31,$ Year $2$