Chapter 16, Problem 2EA

In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.)

A. paid advertising expense

B. paid dividends to shareholders

C. purchased business equipment

D. sold merchandise to customers

E. purchased plant assets