E1.18 (LO 5) The statement of cash flows classifies each transaction as an operating activity, invest- ing activity, or a financing activity. Operating activities are the types of activities the company performs to generate profits. Investing activities include the purchase of long-lived assets such as equipment or the purchase of investment securities. Financing activities are borrowing money, investments by sharehold- ers, and dividends paid. Presented below are the following transactions. 1. Shareholders invested E20,000 cash in exchange for ordinary shares. 2. Issued note payable for 12,000 cash. 3. Purchased office equipment for E11,000 cash. 4. Received E15,000 cash for services performed. 5. Paid 1,000 cash for rent. 6. Paid 600 dividend. 7. Paid E5,700 cash for salaries. Instructions Classify each of these transactions as operating, investing, or financing activities.

E1.18 (LO 5) The statement of cash flows classifies each transaction as an operating activity, an invest- ing activity, or a financing activity. Operating activities are the types of activities the company performs to generate profits. Investing activities include the purchase of long-lived assets such as equipment or the purchase of investment securities. Financing activities are borrowing money, investments by sharehold- ers, and dividends paid. Presented below are the following transactions. 1. Shareholders invested 20,000 cash in exchange for ordinary shares. 2. Issued note payable for 12,000 cash. 3. Purchased office equipment for 11,000 cash. 4. Received 15,000 cash for services performed. 5. Paid 1,000 cash for rent. 6. Paid 600 dividend. 7. Paid 5,700 cash for salaries. Instructions Classify each of these transactions as operating, investing, or financing activities