All-Star Automotive Company experienced the following accounting events during Year 1: 1. Performed services for $15,200 cash. 2. Purchased land for $8,200 cash. 3. Hired an accountant to keep the books. 4. Received $42,000 cash from the issue of common stock. 5. Borrowed $10,400 cash from State Bank. 6. Paid $5,200 cash for salary expense. 7. Sold land for $10,400 cash. 8. Paid $4,200 cash on the loan from State Bank. 9. Paid $5,400 cash for utilities expense. 10. Paid a cash dividend of $2,200 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), financing activities (FA), or not applicable (NA). Event Classification 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $10,200. (Amounts to be deducted should be indicated with a minus sign.) ALL-STAR AUTOMOTIVE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance