It doesn't surprise you at all that Alex is a bit confused by what these activities mean. You explain the following: Cash flows from operations are cash inflows and outflows caused by the restaurant's main business -- selling food and beverages and catering. Cash flows from investing are payments made to acquire long-term assets or cash received from the sale of long-term assets. Cash flows from financing reflect changes in debt, loans, or dividends. You're still getting a blank look from Alex, so you give him a series of examples to help him understand the different categories. Consider each of the following items and determine whether it affects cash flows from operating, investing, or financing, and whether it is a cash inflow or a cash outflow. Then drag and drop that item into the correct bucket and click Submit. 1. The restaurant buys a new 10-burner range and convection oven. 2. You pay off the mortgage on the building. 3. You obtain a short-term loan from the bank. 4. You pay the supplier for a shipment of meat. 5. You sell a used walk-in cooler. 6. A company pays for its catering bill by giving you a check. 7. You send in your quarterly estimated income tax payment. 8. The restaurant buys a new delivery truck to be used in its growing catering business. 9. You incorporate the restaurant and sell shares of stock. 10. You purchase the building next door to the restaurant so you can add more seating area for customers. A. Cash Inflow from Operations B. Cash Outflow from OperationsC. Cash Inflow from InvestingD. Cash Outflow from InvestingE. Cash Inflow from FinancingF. Cash Outflow from Financing