indicate for each transaction (assignment 5 key) would fall into operating "O" financing "F " or investing section "I" of the statement of cash flow if this is not applicable to the transaction, mark the transaction with an X. 1. You started your company with $80,000 that you raised by selling stock in Practice Makes Perfect Inc. 10 your family and friends. 2. You purchased five pianos for $18,000 each, paying cash. You believe these pianos (18,000x5+9000r) will last three years before you replace them. You expect the salvage value to be zero. 3. Knowing that you would noed additional funds, you presented your business plan to the bank and were able to get a $200,000 loan at 12%. 4.You spent $1,000 on supplies (inventory), which you charged on account. 5. The newspaper bills you S800 for the advertisement you ran. You plan on paying the bill next month. 6. The first month you bill students $4,000 for lessons. ( 7. Rent for the space you have leased is $2,000 a month, which you paid. 8. You pay your two part-time piano teachers 8500 each at the end of the month. (500 x2 =1000) 9. One of your students paid the $200 invoice you sent carlier in the month. 10.You adjust the supplies (inventory) account for $300 of sheet music that you gave to 11. You write the check for the interest owed for the month. (200,000 x,12x1/12 mo) = 2,000 12. You record one month of depreciation on the pianos.

- Indicate if each transaction (Assignment 5Key ) would fall into the operating ( O). financing ("F"), or investing ("Y") section of the Statement of Cash Flows. If this is not applicable to the transaction, mark the transaction with an X". 1. 4. 7. 10. 2. 5. 8. 11. 3. 6. 9. 12. - Comnlete the Statoment of Cash Flows below (using the Assignment 5 Key)