Textbook Problem

Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions:

1. a. Sold a warehouse for $750,000.
2. b. Reported a profit of $100,000.
3. c. Retired long-term bonds.
4. d. Paid cash dividends of $350,000.
5. e. Obtained a mortgage for a new building from a local bank.
6. f. Purchased a new robotic system.
7. g. Issued a long-term note payable.
8. h. Purchased a 40% interest in a company.
9. i. Reported a loss for the year.
10. j. Negotiated a long-term loan.

Required:

Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.