Brief Exercise 12-3 Three Types of Activities

For each of the following transactions on the statement of cash flows, indicate whether it would appear

in the Operating Activities section (O), in the Investing Activities section (I), or in the Financing

Activities section (F). Assume the use of the direct method in the Operating Activities section.

_______ 1. Repayment of long-term debt

_______ 2. Purchase of equipment

_______ 3. Collection of customers account

_______ 4. Issuance of common stock

_______ 5. Purchase of another company

_______ 6. Payment of dividends

_______ 7. Payment of income taxes

_______ 8. Sale of equipment