EL7-3 Identify each of the following transactions as an operating activity (O), an irvesting activity (1), a financing activity (F), or a transaction that is not reported on the cash flow statement (N). For each cash flow, indicate whether the item increases (1) or decreases (-) cash. Assume the indirect method is used to report cash flows from operating activities. It is possible to answer more than one section. Activity Section Transactions (1/2(2) Cash Amortization of equipment b. Sale of long-term investment at a loss C. Payment of cash dividend d Increase in inventory . Issuance of preferred shares for cash f. Prepaid expenses decreased during the year 9 Accrual of salaries experse h. Issuance of long-term note payable to borrow Cash i. Casl sale urland j. Payment of long-term dest 2 Identifying activities for the cash flow statement a. O e. F+