Listed below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in a statement of cash flows as an operating, investing, financing, or noncash activity. Also, indicate whether the transaction is a cash inflow or cash outflow, or has no effect on cash. The first answer is provided as an example.

1. Payment of employee salaries.
2. Sale of land for cash.
3. Purchase of rent in advance.
4. Collection of an account receivable.
5. Issuance of common stock.
6. Purchase of inventory
7. Collection of notes receivable.
8. Payment of income taxes.
9. Sale of equipment for a note receivable.
10. Issuance of bonds.
11. Loan to another firm.
12. Payment of a long-term note payable.
13. Purchase of treasury stock.
14. Payment of an account payable.
15. Sale of equipment for cash.

Statement of cash flows shows the cash generated and expended by an entity during an accounting period. The statement divides the inflow and outflow of cash into three sections: operating, investing and financing activities.

Operating activities contain activities relating to cash inflow and outflow of entity`s primary operation during a given year. Example of this inflow and outflow are cash receipt from customers and cash payment to vendors.

Investing activities contain activities relating to entity`s investment in assets. Example includes cash received from disposal of an asset.

Financing activities contain activities relating to entity`s relationship with provider of capital like equity owner and debt holder.

Cash inflow refers incoming of cash into the business. Example includes cash received from customers. Cash outflow refers to outgoing of cash from the business. Example includes cash paid to vendors.