Classifying items on the statement of cash flows Cash flows Cash flow items must be categorized into one of four categories. Identify each item operating (O), investing (I), financing (F), or non-cash (N). Cash purchase of merchandise inventory Cash payment of dividends Cash receipt from the collection of long-term notes receivable Cash payment for income taxes Purchase of equipment in exchange for notes payable Cash receipt from the sale of land investing Cash received from borrowing money Cash receipt for interest income Cash receipt from the issuance of common stock Cash payment of salaries