Stillwater Designs is a private company and outsources the production of its Kicker speaker lines. Suppose that Stillwater Designs provided you with the transactions.

Complete the following:

• For Scenario 1, classify each of the transitions as an operating activity, an investing activity, or a financing activity (drop-down box in Column B).
• For Scenario 1, classify each of the transactions as a source or use of cash (drop-down box in Column C).
• For Scenario 2, classify each of the transitions as an operating activity, an investing activity, or a financing activity (drop-down box in Column B).
• For Scenario 2, if an activity is an operating activity, indicate whether it will be added to or deducted from net income to compute cash from operations (drop-down box in Column C).
• Explain which of the three categories on the statement of cash flows provides the most useful information. Defend your answer.