Q7:

Identify each of the following transactions as either an operating activity (O), an investing activity (I), a financing activity (F), or an activity that is not reported on a cash flow statement (N). Assume the direct method is used to report cash flows from operating activities. Payment of income taxes Issuance of preferred shares Payment of employee salaries Collections of accounts receivable Payment for a delivery truck Repayment of a long-term bank loan (principal only) Receipt of loan interest Payment of accounts payable