Based upon the financial transactions for McDonald’s Corp. (MCD), shown in Exercise 2-21, indicate whether the transaction would be reported in the cash flows from operating, investing, or financing sections of the statement of cash flows.

Data from Exercise 2-21

Describe how the following transactions of McDonald’s Corp. (MCD) would affect the three elements of the accounting equation.

a. Paid research and development expenses for the current year.

b. Purchased machinery and equipment for cash.

c. Received cash from issuing stock.

d. Received cash from the issuance of long-term debt.

e. Made cash sales.

f. Paid selling expenses.

g. Paid employee pension expenses for the current year.

h. Received cash from selling manufacturing equipment for a gain on the sale.

i. Paid officer salaries.

j. Paid taxes.

k. Paid off long-term debt.

l. Paid dividends.