Question 1 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp, uncovered the following items Assume all items involve cash unless there is information to the contrary Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating actrvity (that is, the itam would be activity, and significant noncash investing and financing activity (a) Payment of interest on notes payable isted among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing Operating Activity oncash Investing and Fimancing Activity Financing Activity Investing Acbvey (b) Exchange of land for patent. (c) Sale of building at book value (d) Payment of dividends 1 Conversion of bonds into common stock