E2-15 The statement of cash fl ows classifi es each transaction as an operating activity, an investing activity, or a fi nancing activity. Operating activities are the types of activities the company performs to generate profi ts. Investing activities include the purchase of longlived assets such as equipment or the purchase of investment securities. Financing activities are borrowing money, issuing shares, and paying dividends. Presented below are the following transactions. 1. Issued shares for 20,000 cash. 2. Issued note payable for 10,000 cash. 3. Purchased equipment for 11,000 cash. 4. Received 15,000 cash for services performed. 5. Paid 1,000 cash for rent. 6. Paid 600 cash dividend to shareholders. 7. Paid 6,500 cash for salaries. Instructions Classify each of these transactions as operating, investing, or fi nancing activities.

E2-15 The statement of cash flows classifies each transaction as an operating activity, an investing 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 activi- ties are borrowing money, issuing shares, and paying dividends. Presented below are the following transactions. 1. Issued shares for 20,000 cash. 2. Issued note payable for 10,000 cash. 3. Purchased equipment for 11,000 cash. 4. Received 15,000 cash for services performed. 5. Paid 1,000 cash for rent. 6. Paid 600 cash dividend to shareholders. 7. Paid 6,500 cash for salaries. Instructions Classify each of these transactions as operating, investing, or financing activities