M11-23. Classification of Cash Flows Shake Shack Inc. reports the following items in its 2015 statement of cash flow. For each item, indicate whether it would appear in the operating, investing, or financing section of the statement of cash flows (in $ thousands). Activity a. Inventories $ (24) b. Purchases of property and equipment (30,116) c. Member distributions (dividends) (11,133) d. Net income 4,321 e. Payments on revolving credit facility (2,900) f. Purchases of marketable securities (3,458) s. Depreciation expense 10,111 h. Accounts payable 408 i. Proceeds from issuance of Class B common stock j. Equity-based compensation 12,360 AN 25