Problem #1 - Cash Flow Statement Effects Motif Furniture designs and sells modern furniture. For each of the following first-quarter transactions, indicate whether operating (0). investing (1), or financing activities (F) are affected and whether the effect is a cash inflow (+) or outflow (-) Activity Cash Flow 1 Bought used equipment for cash 2 Paid cash to purchase new equipment 3 Declared and paid cash dividends to shareholders 4 Collected payments on account from customers 5. Recorded an adjusting entry to record accrued salaries expense 6 Recorded and paid interest on debt to creditors 7 Repaid principal on loan from bank B Prepaid rent for the following period 9 Made payment to suppliers on account