Please indicate the section (operating, investing, and financing activities) in which each of the following would be reported on the statement of cash flow. Please place "i" for investing, "f" for financing and "o" for operating.

____ Purchase of fixed assets

____ Operating income

____ Refirement of long-term debt

____ Sale of capital stock

____ Sale of fixed assets

____ Payment of cash dividends

___ Gain on sale of fixed assets

___ Payment of stock dividends

___ Receipt of interest revenue

____ Payment of interest expense


2. On the first day of the current fiscal year, $3,000,000 of 10-year, 9% bonds, with interest payable annually, were sold for $3,100,000. Present entries to record the following transactions for the current fiscal year

(a). Issuance of the bonds
(b). First annual interest payment
(c). Amortization of bond premium for year, using the straight line method of .
amortization.

Indicate whether each of the following world be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: ( "a" for added or "d" for deduct)

____ increase in prepaid expenses
____ amortization of goodwill
____ increase in salaries payable
____ gain on disposal of fixed assets
____ decrease in accounts receivable
____ increase in note receivable
____ amortization of discount of discount on bonds payable
____ decrease in merchandise inventory
____ depreciation of fixed assets
____ loss on retirement of long-term debt
____ decrease in accounts payable
____ increase in note payable due in 30 days
____ amortization of premium on bonds payable


Thank you