Matching 1. For each of the following transactions indicate whether the cash flow classification is a) an operating activity, b) an investing activity, c) a financing activity or d) a noncash transaction. (1 points each) 1. Issued common stock for cash. 2. Payment of long-term note payable with cash 3. Sold an investment at book value for cash. 4. Received cash dividends on long-term investments. 5. Converted bonds to common stock. 6. Purchased a piece of equipment with cash. 7. Purchased inventory with cash. 8. Paid the insurance premium for the year. 9. Purchased a new office building with a mortgage. 10. Paid cash dividends. Classification Short Answer - Respond to the following questions (5 points each) 1. Discuss the relationship between the market or effective interest rate of a bond and the stated interest rate under the following three conditions - a) bond sells at par, b) bond sells at a premium and c) bond sells at a discount