An analysis of comparative statements of financial position, the current year's income statement, and the general ledger accounts of Kingsley Corporation uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity, investing activity, financing activity, and significant noncash investing and financing activity. Transaction Classifications (a) Payment of interest on bank loan. (b) Exchange of land for patent. (c) Disposal of building at carrying amount. (d) Payment of dividends. Financing activity Noncash investing and financing activity Investing activity Operating activity (e) Purchase of inventory. (f) Conversion of bonds payable into common shares.