Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the company uses the direct method in the Operating Activities section.)
IO = Inflow from operating activities
OO = Outflow from operating activities
II = Inflow from investing activities
OI = Outflow from investing activities
IF = Inflow from financing activities
OF = Outflow from financing activities
NR = Not reported in the body of the statement of cash flows but included in a supplemental schedule
______ 1. Collected $10,000 in cash from customers’ open accounts for the period
______ 2. Paid one of the company’s inventory suppliers $500 in settlement of an open account
______ 3. Purchased a new copier for $6,000; signed a 90-day note payable
______ 4. Issued bonds at face value of $100,000
______ 5. Made $23,200 in cash sales for the week
______ 6. Purchased an empty lot adjacent to the factory for $50,000; the seller of the land agrees to accept a five-year promissory note as consideration
______ 7. Renewed the property insurance policy for another six months; cash of $1,000 is paid for the renewal
______ 8. Purchased a machine for $10,000
______ 9. Paid cash dividends of $2,500
______ 10. Reclassified as short-term a long-term note payable of $5,000 that is due within the next year
______ 11. Purchased 500 shares of the company’s own stock on the open market for $4,000
______ 12. Sold 500 shares of Nike stock for book value of $10,000 (they had been classified as long-term investments)