Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following codes to indicate the appropriate category under which the item would appear on the statement of cash flows.

Cash Flows From Operating Activities	Code
Add to Net Income	Add
Deduct from Net Income	Deduct
Cash Flows From Investing Activities	Investing Activities
Cash Flows From Financing Activities	Financing Activities

				Code
1.		Common stock is issued for cash at an amount above par value.		DeductAddFinancing ActivitiesInvesting Activities
2.		Merchandise inventory increased during the period.		Financing ActivitiesDeductInvesting ActivitiesAdd
3.		Depreciation expense recorded for the period.		DeductAddFinancing ActivitiesInvesting Activities
4.		Building was purchased for cash.		Investing ActivitiesFinancing ActivitiesDeductAdd
5.		Bonds payable were acquired and retired at their carrying value.		DeductAddFinancing ActivitiesInvesting Activities
6.		Accounts payable decreased during the period.		Investing ActivitiesDeductFinancing ActivitiesAdd
7.		Prepaid expenses decreased during the period.		DeductInvesting ActivitiesFinancing ActivitiesAdd
8.		Treasury stock was acquired for cash.		AddFinancing ActivitiesDeductInvesting Activities
9.		Land is sold for cash at an amount equal to book value.		AddFinancing ActivitiesDeductInvesting Activities
10.		Patent amortization expense recorded for a period.		Investing ActivitiesFinancing ActivitiesDeductAdd

Each one needs to be Add, deduct, financing activities, or investing activities.

Dense Company's income statement showed revenues of $275,000 and operating expenses of $135,000. Accounts receivable decreased by $40,000 and accounts payable increased by $35,000 during the year. Compute cash receipts from customers and cash payments for operating expenses using the direct method.

Cash receipts from customers	$ ____
Cash payments for operating expenses	$ ____