Cappie Bird considers herself to be quite comfortable with company balance sheets and income statements. However, Cappie is a little nervous about her understanding of the statement of cash flows. In particular, she doesnt understand which cash flows fit into the cash flow categories. She wants to correctly classify those activities associated with buying and selling long-term assetsprimarily the purchase and sale of land, buildings, and equipment.

What is the correct classification of these activities?

• Capital activities
• Purchasing activities
• Investing activities
• Financing activities
• Operating activities