E10-5 (Cash Flow Statement) Indicate the classification in which each of the following would be reported in a government proprietary fund cash flow statement. Use the following letters for each classification to respond:

(a) Cash flows from operating activities

(b) Cash flows from noncapital financing activities

(c) Cash flows from capital and related financing activities

(d) Cash flows from investing activities

(e) None of the above

1. Cash paid to purchase investments with resources restricted for capital asset construction.

2. Cash received from the sale of equipment.

3. Cash paid for salaries.

4. Cash received from interest on investments that are restricted for servicing bonds that were issued to finance construction of a building.

5. Cash paid for interest on refunding bonds that were issued for repayment of bonds that were originally issued to finance purchase of major pieces of equipment.

6. Cash transfer paid to General Fund. (The General Fund budget requires these funds to be used to help finance acquisition of a fire truck.)

7. Cash received from operating grants.

8. Cash received from a transfer from the General Fund to finance expansion of the physical plant.

9. Cash received from capital grants.

10. Cash paid for interest on a short-term note issued to fulfill a temporary need for operating funds.