Exercise Set A EA$2.$ In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating $($O$),$ investing

$($I$),$ financing $($F$),$ or none $(N).($Note: some transactions might involve two sections.$)$

A$.$ paid advertising expense

B$.$ paid dividends to shareholders

C$.$ purchased business equipment

D$.$ sold merchandise to customers

E$.$ purchased plant assets

Solution A:

Solution B:

Solution C:

Solution D:

Solution E: