Options are:

1) Financial activity

2) Investing activity

3) Operating activity

4) Not a cash transaction

Additional Problem 2 For each of the following transactions for Carla Vista Industries, identify whether the transaction should be considered a cash flow from operating, investing, or financing activities, or whether the transaction is not a cash activity. The company follows ASPE (a) Paid salaries of $5,800 (b) Paid $1,200 for advertising services. c) Paid $10,800 for an insurance policy. (d) Borrowed $33,800 cash from the bank. (e) Paid $13,200 interest. (f) Paid $28,800 cash to the bank to repay loan principal. (g) Paid utilities of $5,000. (h) Loaned another company $6,200 in cash. (i) Collected interest of $1,800. G) Collected $5,200 loan principal from borrower (k) Paid income taxes of $21,600