use the following legend to indicate how each transaction would 284122

Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the company uses the direct method in the Operating Activities section.)

IO = Inflow from operating activities

OO = Outflow from operating activities

II = Inflow from investing activities

OI = Outflow from investing activities

IF = Inflow from financing activities

OF = Outflow from financing activities

NR = Not reported in the body of the statement of cash flows but included in a supplemental schedule

______ 1. Collected $10,000 in cash from customers’ open accounts for the period

______ 2. Paid one of the company’s inventory suppliers $500 in settlement of an open account

______ 3. Purchased a new copier for $6,000; signed a 90 day note payable

______ 4. Issued bonds at face value of $100,000

______ 5. Made $23,200 in cash sales for the week

______ 6. Purchased an empty lot adjacent to the factory for $50,000; the seller of the land agrees to accept a five year promissory note as consideration

______ 7. Renewed the property insurance policy for another six months; cash of $1,000 is paid for the renewal

______ 8. Purchased a machine for $10,000

______ 9. Paid cash dividends of $2,500

______ 10. Reclassified as short term a long term note payable of $5,000 that is due within the next year

______ 11. Purchased 500 shares of the company’s own stock on the open market for $4,000

______ 12. Sold 500 shares of Nike stock for book value of $10,000 (they had been classified as long term investments)