E 4-12 Statement of cash flows: classifications L04-8 The statement of cash flows classifies all cash inflows and outflows into one of the three categories shown below and lettered from a through c. In addition, certain transactions that do not involve cash are reported in the state- ment as noncash investing and financing activities, labeled d. a. Operating activities b. Investing activities c. Financing activities d. Noncash investing and financing activities CHAPTER 4 The Income Statement, Comprehensive Income, and the Statement of Cash Flows 213 2. Required: For each of the following transactions, use the letters above to indicate the appropriate classification category. 1. Purchase of equipment for cash. Payment of employee salaries. 3. Collection of cash from customers. 4. Cash proceeds from notes payable. 5. Purchase of common stock of another corporation for cash. 6. Issuance of common stock for cash. 7. Sale of equipment for cash. 8. Payment of interest on notes payable. 9. Issuance of bonds payable in exchange for land and building, 10. Payment of cash dividends to shareholders. 11. Payment of principal on notes payable