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Problem 15-1 Indicate the transaction of Miyota Communications should be classified as an operating activity, an investing activity, a financing activity, or should not be included in the statement of cash flows. a. Made payments on accounts payable to merchandise suppliers. b. Paid the principle amount of note payable to First Bank. c. Paid interest charges relating to a note payable to First Bank. d. Issued bonds Payable for cash. e. Paid salaries to employees in the finance department. f. Collected an account receivable from customer. g. Purchased land and building for cash. h. Made year-end adjusting entry to recognize depreciation expense. i. At year-end, purchased for cash an insurance policy covering the next 12 months. j. Paid the quarterly dividend on preferred stock. k. Paid the semiannual interest on bonds payable. l. Received a quarterly dividend from an investment in preferred stock of another corporations. m. Sold for cash an investment in the preferred stock of another corporation. Problem 15-2 The account staff of Franklin Optical has assembled the following information for the year ended December 31, 2003: Cash sales $ 800,000 Credit sales 2,500,000 Collection on accounts receivable 2,200,000 Interest and dividend received 100,000 Purchases (all on account) 1,800,000 Payment on accounts payable to merchandise suppliers 1,500,000 Cash payments for operating expenses 1,050,000 Interest paid 180,000 Income taxes paid 95,000 Loans made to borrowers 500,000 Collections on loans (excluding receipts of interest) 260,000 Cash paid to acquire plant assets 3,100,000 Book value of plant assets sold 660,000 Loss on sales of plant assets 80,000 Proceeds from issuing bond payable 2,500,000 Dividends paid 120,000 Cash, Jan. 1 446,000 Cash, Dec.31 ? Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities.