Part A: For each of the following transactions, indicate the appropriate section on the Cash Flows Statement. Use the following key:

OP = operating section

IN = investment section

FN = finance section

S = supplementary section

1) Bought a machine for cash

2) Paid a cash dividend

3) Issued common stock for cash

4) Sold land for cash

5) Made sales for cash

6) Paid a utility bill in cash

7) Issued common stock for a building

8) Converted bonds payable into common stock

9) Borrowed cash on a mortgage

Part B: The following items relate to the operating section (direct method)

10) A/R (Jan 1) $ 8,000

A/R (Dec 31) 10,000

Sales on account 15,000

Find cash collections on A/R

11) Utilities payable (Jan 1) $ 18,000

Utilities payable (Dec 31) 6,000

Utilities expense 11,000

Find cash payments for utilities

12) Prepaid Insurance (Jan 1) $ 19,000

Prepaid Insurance (Dec 31) 16,000

Insurance expense 17,000

Find cash pre- payments for insurance