(Classifying transactions for a cash flow statement, LO 3) Classify each of the following transactions and economic events as an operating, investing, or financing cash flow; a cash equivalent; or whether the item has no effect on cash flow. Also, indicate whether each item increases or decreases cash.

a. Merchandise is sold on credit.

b. Suppliers of inventory are paid in cash.

c. Accounts receivable are collected from customers.

d. Sale of shares of a public company.

e. Inventory is purchased on credit.

f. Interest is paid on a bond.

g. Equipment is depreciated.

h. Equipment is purchased for cash.

i. Payment is made to a law firm for services rendered.
j. Cash is obtained from a lender in exchange for a long-term note payable.

k. A bank loan is repaid.

l. Cash dividends are paid to shareholders.
m. Purchase of a government of Canada treasury bill that matures in one month.
n. Purchase of a guaranteed investment certificate that matures in three years.
o. Land is purchased. The seller of the land takes back a mortgage.
p. Inventory is sold for cash.