For each transaction provided in items 1 through 6, select the proper section of the statement of cash flows in which it should be reported using the indirect method from the reporting categories provided. If the item is not required to be reported on the statement of cash flows, select ‘Not required’.

Loss on sale of old equipment 
           [ Choose ]             Cash flows from financing activities-increase as a result of cash inflows             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows             Cash flows are already included in net income - not necessary to            separately report on statement of cash flows             Cash flows from operating activities-will be subtracted from net income             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from investing activities-decrease as a result of cash outflows             Disclosed as a non-cash transaction in the notes         Issuance of stock to pay off bonds payable 
           [ Choose ]             Cash flows from financing activities-increase as a result of cash inflows             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows             Cash flows are already included in net income - not necessary to            separately report on statement of cash flows             Cash flows from operating activities-will be subtracted from net income             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from investing activities-decrease as a result of cash outflows             Disclosed as a non-cash transaction in the notes         Issued $500,000 in Binds for cash 
           [ Choose ]             Cash flows from financing activities-increase as a result of cash inflows             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows             Cash flows are already included in net income - not necessary to            separately report on statement of cash flows             Cash flows from operating activities-will be subtracted from net income             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from investing activities-decrease as a result of cash outflows             Disclosed as a non-cash transaction in the notes         Sold trading investments at book value (no gain or loss)
           [ Choose ]             Cash flows from financing activities-increase as a result of cash inflows             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows             Cash flows are already included in net income - not necessary to            separately report on statement of cash flows             Cash flows from operating activities-will be subtracted from net income             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from investing activities-decrease as a result of cash outflows             Disclosed as a non-cash transaction in the notes         Paid salaries expense for the current period 
           [ Choose ]             Cash flows from financing activities-increase as a result of cash inflows             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows             Cash flows are already included in net income - not necessary to            separately report on statement of cash flows             Cash flows from operating activities-will be subtracted from net income             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from investing activities-decrease as a result of cash outflows             Disclosed as a non-cash transaction in the notes         Decrease in salaries payable 
           [ Choose ]             Cash flows from financing activities-increase as a result of cash inflows             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows             Cash flows are already included in net income - not necessary to            separately report on statement of cash flows             Cash flows from operating activities-will be subtracted from net income             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from investing activities-decrease as a result of cash outflows             Disclosed as a non-cash transaction in the notes