Classification of Cash Flows For each of the items below, indicate whether the cash flow item relates to an operating activity, an investing activity, or a financing activity: a. Cash receipts from customers for services rendered Answer 1 Choose... b. Sale of long‑term investments for cash Answer 2 Choose... c. Acquisition of plant assets for cash Answer 3 Choose... d. Payment of income taxes Answer 4 Choose... e. Bonds payable issued for cash Answer 5 Choose... f. Payment of cash dividends declared in previous year Answer 6 Choose... g. Purchase of short‑term investments (not cash equivalents) for cash Answer 7 Choose...

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.