Classifying Cash Flows Classify each of the following cash flows as an (1) operating activity, (2) investing activity, or (3) financing activity. Classifying Cash Flows Classify each of the following cash flows as an (1) operati a. Cash paid for dividends. b. Cash received from the sale of land. c. Cash received on sale of merchandis d. Cash received on the issuance of a e. Cash paid for interest on a note pay f. Cash paid to reduce the principal bal