MGMT FFAC Ch. 12 Exercises Item 1: Classify each transaction as either an operating activity "OA, an investing activity "IA," or a financing activity "FA," or a noncash investing and financing activity "NC." Selected transactions for the Entity N Company are listed below. Collected accounts receivable. 1 Declared and paid dividends on common stock. 2 Sold long-term investments for cash. 3 Issued stock for equipment. 4 Repaid five year note payable. 5 Paid employee wages. Converted bonds payable to common stock. 7 Acquired long-term investment with cash. 8 Sold buildings and equipment for cash. 9 Sold merchandise to customers 10 Item 2: Entity O reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $75,000 for the year Ralances of the current the beginning and end of End of Year year are as follows: Beginning of Year asset and current liability accounts $20,000 $15,000 Cash 32,000 22,000 Accounts receivable 60,000 72,000 Inventory 18,000 12,000 Accounts payable 3,000 5,000 Taxes payable Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method