Following are the transactions of Equine Company:

a. Sold equipment for $\$ 1,000$. The original cost was $\$ 15,700$; the book value is $\$ 1,700$.

b. Purchased equipment costing $\$ 110,000$ by paying cash of $\$ 20,000$ and signing a $\$ 90,000$ long-term note at 12 percent interest.

c. Received $\$ 5,000$ of the principal and $\$ 450$ in interest on a long-term note receivable.

d. Received $\$ 2,500$ in cash dividends on stock held as a trading security. (Assume that the cost method is used.)

e. Purchased treasury stock for $\$ 3,000$.

Complete the following:

1. Prepare journal entries for each of the transactions. (Omit explanations.)

2. For each transaction, indicate the amount of cash inflow or outflow. Then, note how each transaction would be classified on a statement of cash flows.