Exercise 4-12 Statement of cash flows; classifications [LO4-8] The statement of cash flows classifies all cash inflows and outflows into one of three categories: Operating activities, Investing activities, Financing activities. In addition, certain transactions that do not involve cash are reported in the statement as noncash investing and financing activities. a. Operating activities b. Investing activities C. Financing activities d. Noncash investing and financing activities Required: For each of the following transactions, select the appropriate classification category Purchase of equipment for cash. Payment of employee salaries. Collection of cash from customers. Cash proceeds from a note payable. 4 Purchase of common stock f another corporation for cash. 6 Issuance of common stock for cash Sale of equipment for cash. Payment of interest on note payable. Issuance of bonds payable in exchange for land and building Payment of cash dividends to shareholders Payment of principal on note payable. 8. 10