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Exercise 4-12 (Static) Statement of cash flows; classifications [LO4-8] The statement of cash flows classifies all cash inflows and outflows into one of the three categories: Operating activities, Investing activities, Financing activities. In addition, certain transactions that do not involve cash are reported in the statement as noncash investing and financing activities. Required: For each of the following transactions, select the appropriate classification category. 1 Purchase of equipment for cash. 2 Payment of employee salaries. 3 Collection of cash from customers. 4 Cash proceeds from notes payable. 5 Purchase of common stock of another corporation for cash. 6. Issuance of common stock for cash. 7. Sale of equipment for cash. 8 Payment of interest on notes payable. 9 Issuance of bonds payable in exchange for land and building. 10 Payment of cash dividends to shareholders. 11. Payment of principal on notes payable