The Vikon Company had the following selected transactions during the past year:

a. Sold (issued) 1,000 shares of common stock, $15 par, for $50 per share.

b. Collected $200,000 of accounts receivable.

c. Paid dividends to current stockholders in the amount of $70,000 (assume dividends were declared earlier, establishing a dividends payable account).

d. Received $4,000 interest on a note receivable from a company officer.

e. Paid the current year’s insurance Expense (or Prepaid Insurance) of $3,000.

f. Recorded depreciation expense of $8,000.

Complete the following:

1. Prepare appropriate journal entries for each of the above transactions. (Omit explanations.)

2. For each transaction, indicate the amount of cash inflow or outflow and also how each cash flow would be classified on a statement of cash flows.