Classify each of the following items as an operating, investing, or financing activity.
1. Dividends paid.
2. Sale of goods or services for cash.
3. Sale of equipment.
4. Purchase of inventory.
5. Repayment of notes payable.
126. Classify each of the following items as an operating, investing, or financing activity.
1. Payment of income taxes.
2. Sale of investments.
3. Receipt of interest.
4. Issuance of common stock.
5. Purchase of intangibles.
127. The following selected transactions occur during the first year of operations. Determine how each should be reported in the statement of cash flows. State whether it is a cash inflow or a cash outflow and whether it is an operating, investing, or financing activity.
1. Issued a million shares of common stock at $20 per share.
2. Purchased land and a building for $3 million.
3. Received $200,000 from a cash sale of merchandise to customers.
4. Paid a dividend of $1 per share to common stockholders.
5. Loaned $50,000 to an employee and accepted a note receivable.
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