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Assume CVS Health Corporation executed the following transactions during the year. Indicate whether the transaction creates a cash inflow (In) or outflow (Out). Next, determine how each item should be classified in the statement of cash flows: an operating activity (O), an investing activity (I), or a financing activity (F). For example: $50,000 cash received for the sale of snack foods. Answer: In/O 1. $250,000 cash paid to purchase a warehouse 2. $120,000 cash paid for interest on a loan 3. $850,000 cash paid to employees as wages 4. $20,000,000 cash raised through the issuance of stock 5. $450,000 cash paid to the government for taxes 6. $350,000 cash received as part of a settlement of a legal case 7. $630,000 cash received from the sale of long-term securities 8. $75,000 cash received from the sale of used office equipment 9. $500,000 cash dividend paid to shareholders 10. $90,000 cash received as interest earned on a government bond $50,000 cash received for the sale of snack foods. Answer: In/O 1. $250,000 cash paid to purchase a warehouse \begin{tabular}{|ll} \hline \multicolumn{1}{|l|}{interestonaloanIn/O} & mployeesaswagesOut/O \\ \hline he government for taxes \\ \hline Out/l & as part of a settlement of a legal case \\ \hline In/F & rom the sale of used office equipment \\ \hline Out/F & paid to shareholders \\ \hline \end{tabular}

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