Problem 2

Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI), cash outflow (CO), or no effect on cash (NE). The first answer is provided as an example.

Type of Activity		Cash Inflow or Outflow		Transaction
F		CI		1. Issuance of common stock
				2. Issuance of bonds
				3. Investment in bonds
				4. Collection of a note receivable
				5. Sale of inventory
				6. Repayment of note payable
				7. Payment of a cash dividend
				8. Purchase of land for cash
				9. Reissue of treasury stock
				10. Collection of an account receivable
				11. Issuance of a note payable
				12. Payment of employee salaries
				13. Sale of equipment for a note receivable
				14. Payment of interest on bonds payable
				15. Sale of a building