For each transaction provided in items 1 through 7, select the proper section of the statement of cash flows in which it should be reported using the indirect method from the reporting categories...

Reporting Categories

a. Cash flows from operating activities—will be added to net income

b. Cash flows from operating activities—will be subtracted from net income

c. Cash flows from investing activities—increase as a result of cash inflows

d. Cash flows from investing activities—decrease as a result of cash outflows

e. Cash flows from financing activities—increase as a result of cash inflows

f. Cash flows from financing activities—decrease as a result of cash outflows

g.Disclosed as a non-cash transaction in the notes

h. Cash flows are already included in net income - not necessary to

separately report on statement of cash flows

1. Loss on sale of old equipment

2. Declaration of stock (not cash) dividends

3. Recorded amortization on intangible assets

4. Sold trading investments at book value (no gain or loss)

5. Paid for salaries for the current period

6. Paid for salaries that were accrued during the previous period

7. Acquired machinery by issuing bonds payable