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Classifying transactions for a cash flow statement, Ashley Booth owns and operates a movie theatre in a small city. For each of the following, state whether the item should be classified as an operating, financing, or investing cash flow, whether the item represents a cash inflow or outflow, and the amount that would be reported on the cash flow statement. Explain your reasoning. Assume Ashley uses ASPE. a. Sold $150,000 in snacks at the concession stand for cash. b. Repaid a $25,000 bank loan. c. Paid employees $100,000 in wages. d. Gave $5,000 in refunds for tickets purchased but not used. e. Expensed $30,000 for depreciation. f. Sold old equipment for $18,000. The loss on the sale was $5,000. g. Purchased new projection equipment for $10,000 cash. She also agreed to pay the equipment supplier $5,000 in two years. h. Purchased advertising in local newspapers during the year for $15,000 cash. i. Ashley contributed $20,000 in cash for additional shares in the theatre. j. Paid $10,000 in interest on loans.
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