All-Star Automotive Company experienced the following accounting events during Year 2: 1. Performed services for $25,000 cash. 2. Purchased land for $6,000 cash. 3. Hired an accountant to keep the books. 4. Received $50,000 cash from the issue of common stock. 5. Borrowed $5,000 cash from State Bank. 6. Paid $14,000 cash for salaries expense. 7. Sold land for $9,000 cash. 8. Paid $2,000 cash on the loan from State Bank. 9. Paid $2,800 cash for utilities expense. 10. Paid a cash dividend of $5,000 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows by selecting operating activities, investing activities, or financing activities. b. 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.) Complete this question by entering your answers the tabs below. Required A Required B 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.) (Cash outflows should be indicated with a minus sign.) ALL-STAR AUTOMOTIVE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities:

All-Star Automotive Company experienced the following accounting events during Year 2 : 1. Performed services for $25,000 cash. 2. Purchased land for $6,000 cash. 3. Hired an accountant to keep the books. 4. Received $50,000 cash from the issue of common stock. 5 . Borrowed $5,000 cash from State Bank. 6. Paid $14,000 cash for salaries expense. 7. Sold land for $9,000 cash. 8. Paid $2,000 cash on the loan from State Bank. 9. Paid $2,800 cash for utilities expense. 10. Paid a cash dividend of $5,000 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows by selecting operating activities, investing activities, or financing activities. b. 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.) Complete this question by entering your answers the tabs below. 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.) (Cash outflows should be indicated with a minus agn.) 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.) (Cash outflows should be indicated with a minus sign.)