PART $1$ Identify the following activity pertaining to the statement of cash flows on the direct method:

$1.$ Payment of interest portion of financing lease

$2.$ Payment of cash dividend

$3.$Cash sale of building

$4.$ Purchase of treasury stock

Options:

A$.$ Operating activity

B$.$ Investing activity

C$.$ Financing activity

D$.$ Noncash investing and financing activity

E$.$ Not reported on statement of cash flows

PART $2$

Identify the following activity pertaining to the statement of cash flows on the indirect method.

$1.$ Amortization of patent

$2.$ Decrease in accounts payable

$3.$ Loss on sale of land

$4.$ Equity method investment revenue in excess of dividends received

Options:

A$.$ Operating activity as an addback item

B$.$ Operating activity as a subtract from item

C$.$ Investing activity

D$.$ Financing activity

E$.$ Not reported on statement of cash flows