Part A

For each of the following eleven transactions, indicate by letter whether the cash effect of the transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI), cash outflow (CO), or no effect on cash (NE). Your Excel sheet (Part A) should contain three columns: Transaction, Type of Activity, and Cash Inflow or Outflow.

Transactions

1. Payment of employee salaries
2. Issuance of bonds
3. Payment of income taxes
4. Payment of a long-term note payable
5. Sale of treasury stock
6. Payment of an account payable
7. Sale of land for cash
8. Purchase of long-term assets by issuing debt
9. Collection of an account receivable
10. Issuance of common stock
11. Purchase of inventory