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The cash flow statement also categorizes all cash transactions as operating, investing, or financing. Operating cash flows include collections from customers, payments to suppliers, payments for wages, rent, and other normal cosis of operating the business. Investing cash flows generally include the purchase and sale of long-term property such as buildings and equipment. Financing cash flows include the borrowing and repayment of debt, the issuance of stock, and the payment of dividends. For each transaction below that affected cash, indicate with an , | or F if the transaction is operating, investing, or financing. Then check out the statement of cash flows in the feedback section and see how the classifications are applied. There is no answer box next to transactions that did not affect cash. 1.On December 1, J. Pell contributes $20,000 to the business and receives stock| | 2 PAS borrows $30,000'rom the bank| | 3 PAS pays $2,000 for sound equipment for the gallery. 4 PAS pays $12,000 for a year's rent in advance. 5 PAS buys $16,000 of prints and paintings on credit, to sell to customers. 6 PAS receives $1,500 for art lessons provided in December. 7 Customer takes $400 of lessons and will pay bill next month. 8 Business pays $120 for December's phone bill. 9 Receive December's utility bill for $300. PAS will pay the bill in January. 10 Cusiomer pays $1,200 for 12 monthly lessons, beginning this menth| 11 Sell three paintings that cost $500 each. Customer will pay $2,700 for the paintings next month. 12 PAS distributes $400 to J. Pell as a dividend (The adjusting entries are not included as they would not use cash.)