Exercise 4-12 (Static) Statement of cash flows; classifications (L04-8) The statement of cash flows classifies all cash inflows and outflows into one of the three categories: Operating activities, Investing activities, Financing activities. In addition, certain transactions that do not involve cash are reported in the statement as noncash Investing and financing activities. Required: For each of the following transactions, select the appropriate classification category. 1 2 3 4. 5 6 7 . Purchase of equipment for cash Payment of employee salarios: Collection of cash from customers. Cash proceeds from notes payable Purchase of common stock of another corporation for cash. Issuance of common stock for cash Sale of equipment for cash Payment of interest on noten payable Issuance of bonds payable in exchange for land and building Payment of cash dividends to shareholders Payment of principal on notes payable 9 10 11 Exercise 4-12 (Static) Statement of cash flows; classifications (L04-8] The statement of cash flows classifies all cash inflows and outflows into one of the three categories: Operating activities, Investing activities, Financing activities. In addition, certain transactions that do not involve cash are reported in the statement as noncash investing and financing activities. Required: For each of the following transactions, select the appropriate classification category. 2 3 4 5 6 7 Financing activities Investing activities Noncash investing and financing activities Operating activities Purchase of equipment for cash Bayment of employee salaries Collection of cash from customers ash proceeds from notes payable urchase of common stock of another corporation for cash suance of common stock for cash ale of equipment for cash ayment of interest on notos payable. Instance of bonds payable in exchange for land and building, Payment of cash dividends to shareholders Payment of principal on notes payable 8 9 10 11