Exercise 12-21 Classification of Activities LO3.5 T'se the following legend to indicate how each cate how cach transaction would be reported on the statement of EXAMPLE 12-1, 12-3, cash flows. (Assume that the company uses the direct method in the Operating Activities section.) 10 Intlow from operating activities 00 = Outflow from operating activities II = Intlow from investing activities OI = Outflow from investing activities IF = Inflow from financing activities OF = Outflow from financing activities NR = Not reported in the body of the statement of cash flows but included in a supplemental schedule 1. Collected $10,000 in cash from customers' open accounts for the period 2. Paid one of the company's inventory suppliers $500 in settlement of an open account 3. Purchased a new copier for $6,000; signed a 90-day note payable 4. Issued bonds at face value of $100,000 5. Made $23,200 in cash sales for the week 6. Purchased an empty lot adjacent to the factory for $50,000; the seller of the land agrees to accept a five-year promissory note as consideration 7. Renewed the property insurance policy for another six months; cash of $1,000 is paid for the renewal 8. Purchased a machine for $10,000 9. Paid cash dividends of $2,500 10. Reclassified as short-term a long-term note payable of $5,000 that is due within the next year 11. Purchased 500 shares of the company's own stock on the open market for $4,000 12. Sold 500 shares of Maple stock for book value of $10,000 (they had been classi fied as long-term investments) AL FI- 102.6