Item 1: Classify each transaction as either an operating activity "OA", an investing activity "IA," or a financing activity "FA," or a noncash investing and financing activity "NC." +1/2 per Selected transactions for the Entity A are listed below. 1. Common stock is sold to investors for cash above par value. 2. Bonds payable are issued for cash. 3. Interest on a short-term note receivable is collected. 4. Products and services are sold for cash to customers. 5. Equipment is sold for cash at book value. 6. Cash is paid to purchase inventory. 7. Convertible bonds payable are converted into common stock. 8. Cash dividends on Entity A's common stock are declared and paid. 9. Shares of Ford common stock are purchased for cash. 10. Land that will be held for speculation is purchased for cash. Item 2 : Entity B reported net income of $98,000 for the current year. Depreciation recorded on buildings and equipment amounted to $30,000 for the year. Balances of needed current asset and current liability accounts at the beginning and end of the year are as follows: Also, a loss on the sale of land of $7,500 was reported. Instructions: Compute the changes in the accounts for each year and then prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. Net income 98,000 Adjustments to reconcile net income to cash flow from operating activities