Digital Telephony issued $\backslash (10\backslash \%\backslash )$ bonds, dated January $1,$ with a face amount of $\backslash (\backslash$$ $37\backslash )$ million on January $1,2024.$ The bonds mature in $2034(10$ years$).$ For bonds of similar risk and maturity the market yield is $\backslash (12\backslash \%\backslash ).$ Interest is paid semiannually on June $30$ and December $31.$ Digital recorded the issue as follows:

Note: Use appropriate factor$($s$)$ from the tables provided. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ PVA of $\backslash$$$1,$ FVAD of $\backslash$$$1$ and PVAD of $\backslash$$$1)$

Digital also leased switching equipment to Midsouth Communications, Incorporated on September $30,2024.$ Digital purchased the equipment from MDS Corporation at a cost of $\backslash (\backslash$$ $11\backslash )$ million. The five$-$year lease agreement calls for Midsouth to make quarterly lease payments of $\backslash$$$717,837,$ payable each September $30,$ December $31,$ March $31,$ and June $30,$ with the first payment on September $30,2024.$ Digital's implicit interest rate is $\backslash (12\backslash \%\backslash ).$

Required:

What would be the amounts related to the lease that Midsouth would report in its statement of cash flows for the year ended December $31,2024,$ under the direct method?

Note: Do not round intermediate calculations. Enter your answers in whole dollars. List cash outflows as negative amounts.

What would be the amounts related to the lease that Midsouth would report in its statement of cash flows for the year ended December $31,2024,$ under the direct method?

Please answer with each of the activities $($operating$,$ investing, financing$)$