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21. Classification of cash flows Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: O = operating activities, I = investing activities, and F = financing activities. Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X. Answer: __(a) Paid an account payable for inventory purchased in a prior accounting period. (b) On December 28, made a large credit sale; terms, 2/10, n/30. _ (c) Received a dividend from an investment in IBM common stock. _(d) Paid a dividend to stockholders. (e) Paid the interest on a note payable to First Bank. (f) Paid the principal amount due on the note payable to First Bank (g) Transferred cash from a checking account into a money market fund. (h) Made an adjusting entry to record accrued wages payable at the end of the period. (i) Recorded depreciation expense for the current year. (1) Purchased plant assets for cash