Items 1-10 in the table at the bottom represent various transactions pertaining to Phillip University, a private university, for the year ended December 31, Year 4. The table below represents a listing of how the transactions could impact the statement of activities (list A) and the statement of cash flows (list B).

Task:Indicate how each transaction should be reported by Phillip University on (1) the statement of activities and (2) the statement of cash flows prepared for the year ended December 31, year 4. Phillip uses the direct method of reporting cash flows from operating activities. List A and B effects may be used once, more than once, or not at all.

Statement of activities A	Cash Flows B
Increases net assets without donor restriction	H. Increases Cash Flow from operating activities
Increases net assets with donor restriction	I. Decreases Cash Flow from operating activities
Decreases net assets without donor restriction	J. Increases Cash Flow from Investing activities
Decreases net assets with donor restriction	K. Decreases Cash Flow from Investing activities
Transaction not reported on the statement of activities	L. Increases Cash Flow from Financing activities
	M. Decreases Cash Flow from Financing activities
	N. Transaction not reported on the statement
	O. Transaction reported in the schedule reconciling change in net assets to net cash provided from operating activities

	Transaction	List A	List B
1	A donor contributed 100,000 and stipulated that it be invested permanently
2	Donors contributed 500,000 for the acquisition of equipment
3	Depreciation expense of 750,000 was recorded for year 4
4	3,000,000 was received, representing tuition for the spring, summer and falls semesters
5	Investments of 100,000 were acquired with the cash received from the donor in transaction 1
6	Interest and dividends of 8,000 were received from the investments acquired in transaction 5. The donor stimulated the earnings be used for student scholarships in year 4
7	75,000 was received from donors in year 4 who had pledged the amount in year 3. The cash will be used to pay for a marketing campaign that aimed at increasing enrollment. The marketing cost was incurred in year 4 and will be paid in year 5
8	900,000 was paid to faculty for salaries incurred during the year
9	25,000 was given to the faculty for summer research grants. The grants came from alumni donations made in year 3
10	40,000 of donations were received form alumni who did not stipulate how the donations were to be used