For each of the following transactions reported on a statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section (I), or in the Financing Activities section (F). Put an S in the blank if the transaction does not affect cash but is reported in a supplemental schedule of noncash activities. Assume that the company uses the direct method in the Operating Activities section.
______ 1. A company purchases its own common stock in the open market and immediately retires it.
______ 2. A company issues preferred stock in exchange for land.
______ 3. A six-month bank loan is obtained.
______ 4. Twenty-year bonds are issued.
______ 5. A customer’s open account is collected.
______ 6. Income taxes are paid.
______ 7. Cash sales for the day are recorded.
______ 8. Cash dividends are declared and paid.
______ 9. A creditor is given shares of common stock in the company in return for cancellation of a long-term loan.
______ 10. A new piece of machinery is acquired for cash.
______ 11. Stock of another company is acquired as an investment.
______ 12. Interest is paid on a bank loan.
______ 13. Factory workers are paid.