Use LogiSim to build and test a circuit that acts as a three-bit integer ALU (i.e. it operates on three-bit signed integers, in two's-complement notation, so the range of possible values is -8 to +7). It should be able to perform five two-input operations: AND, OR, ADD, SUB, and SLT, each producing a three-bit result. Since there are five operations, you'll need 3 bits of "opcode"; you may decide for yourself which 3-bit pattern corresponds to which operation. Don't worry about detecting arithmetic overflow.
You may use LogiSim's built-in AND, OR, NOT, NAND, NOR, XOR, and MUX gates, in single-output form; you may not use the built-in arithmetic gadgets, nor LogiSim's multi-output gadgets that stand for a bunch of components in parallel. You may want to build some simple gadgets (like a full-adder) of your own and use them as black-boxes in your main circuit.