Question: 1. Does a statement of cash flows report the cash payments to purchase cash equivalents? Does it report the cash receipts from selling cash equivalents?
2. Identify the three categories of cash flows reported separately on the statement of cash flows.
3. Identify the cash activity category for each transaction:
(a) purchase equipment for cash,
(b) cash payment of wages,
(c) sale of common stock for cash,
(d) receipt of cash dividends from stock investment,
(e) cash collection from customers,
(f) notes issued for cash.