a. Whether each transaction is an inflow, outflow or a non-cash item in the statement of cash flows. Use the letter I for Inflow, letter O for outflow and the letter N for non-cash. b. The section of the statement of cash flows where each transaction appears, ie operating, investing or financing. Use the letter O for operating, letter I for investing, F for financing and N for non-cash. Transaction 1. Interest Paid 2. Purchase of another business 3. Collections from customers 4. Dividends Declared and paid Cash Flow Effect Cash flow section Inflow (1) Outflow (O) Non-cash item (N) Operating (O) Investing (1) Financing(F) Non Cash Item (NC)