The following transactions pertain to the operations of Stone Company for 2008:

1. Acquired \($24,000\) cash from the issue of common stock.

2. Provided \($40,000\) of services on account.

3. Incurred \($25,000\) of other operating expenses on account.

4. Collected \($32,000\) cash from accounts receivable.

5. Paid a \($2,000\) cash dividend to the stockholders.

6. Paid \($18,000\) cash on accounts payable.

7. Performed services for \($8,000\) cash.

8. Paid a \($6,000\) cash advance for a one year contract to rent equipment.

9. Recognized \($9,000\) of accrued salary expense.

10.Accepted an \($18,000\) cash advance for services to be performed in the future.

Required:

a. Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.

b. Prepare a statement of cash flows. (There is no beginning cash balance.)