A statement of cash flows must be reported by certain state and local governmental entities. The following activities relate to the presentation of a statement of cash flows. For each activity, select from the option list provided the best classification. Each choice may be used once, more than once, or not at all. Activity 1. Cash interest paid to lenders other than to acquire, construct, or improve capital assets. 2. Acquisition of assets by assuming directly related liabilities. 3. Receipt of tax revenues. 4. Making student loans. 5. Cash interest received as returns on nonprogram loans. 6. Interfund services used. 7. Selling services. Classification E B E E E