The statement of cash flows classifies each transaction as an operating activity, an investing activity, or a financing activity. Operating activities are the types of activities the company performs to generate profits. Investing activities include the purchase of longlived assets such as equipment or the purchase of investment securities. Financing activities are borrowing money, issuing shares of stock, and paying dividends.

Presented below are the following transactions.

1. Issued stock for $20,000 cash.

2. Issued note payable for $12,000 cash.

3. Purchased office equipment for $11,000 cash.

4. Received $15,000 cash for services performed.

5. Paid $1,000 cash for rent.

6. Paid $600 cash dividend to stockholders.

7. Paid $5,700 cash for salaries.

Instructions Classify each of these transactions as operating, investing, or financing activities.