Learning which items belong in each category of the statement of cash flows is an important first step in understanding their meaning. Use a letter to mark each item in the following list as a cash flow from Operating, Investing, or Financing activities. Put parentheses around the letter if it is a cash outflow and use no parentheses if it’s an inflow.
_____ 1. Cash paid to purchase land
_____ 2. Cash collected from clients
_____ 3. Cash received from selling equipment
_____ 4. Cash paid for dividends
_____ 5. Cash paid to suppliers
_____ 6. Cash received from issuing stock