The following transactions pertain to the operations of Stone Company for 2011:

1. Acquired \(\$ 24,000\) cash from the issue of common stock.

2. Provided \(\$ 40,000\) of services on account.

3. Incurred \(\$ 25,000\) of other operating expenses on account.

4. Collected \(\$ 32,000\) cash from accounts receivable.

5. Paid a \(\$ 2,000\) cash dividend to the stockholders.

6. Paid \(\$ 18,000\) cash on accounts payable.

7. Performed services for \(\$ 8,000\) cash.

8. Paid a \(\$ 6,000\) cash advance for a one year contract to rent equipment.

9. Recognized \(\$ 9,000\) of accrued salary expense.

10. Accepted an \(\$ 18,000\) cash advance for services to be performed in the future.
Required

a. Classify the cash flows from these transactions as operating activities \((\mathrm{OA})\), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.

b. Prepare a statement of cash flows. (There is no beginning cash balance.)