Effects of Transactions on Cash Flows
The following transactions were reported by Colorado Company in its statement of cash flows. Indicate whether each transaction is an operating (O), a financing (F), an investing (I), or a transaction that has no effect on cash flows (X) activity.
1. Office supplies were purchased and paid for.
2. Land was sold for cash.
3. Employees' salaries and wages were paid.
4. The firm made a short-term loan to its president.
5. A short-term bank loan was obtained.
6. Interest on this loan was paid.
7. The maturity date on this loan was extended.
8. Depreciation for the year was recorded.
9. The firm's tax return was filed with a request for a refund.
10. The firm paid its unemployment taxes to the state.