Analyze each transaction listed and place X in the appropriate columns to indicate the transaction's classification and its effect on cash flow using the indirect method. Cash Flow Classification Effect on Cash Flow Operating Investing Financing Non-Cash Activity TRANSACTIONS Increase Decrease No Activity Activity Transactions Effect 1. Increased accounts payable 2. Decreased Inventory 3. Increased Prepaid Insurance 4. Earned a profit 5. Declared and paid a cash dividend 6. Issued Stock for cash 7. Retired long-term debt by issuing stock 8. Purchased a long-term investment with cash 9. Sold machine at a loss 10. Retired fully depreciated equipment 11. Decreased interest payable 12. Decreased dividends receivable 13. Decreased accounts receivable 14. Converted bonds to ordinary shares 15. Purchased 90-day treasury bil.
Analyze each transaction listed and place X in the appropriate columns to indicate the transaction's classification and its effect on cash flow using the indirect method. Cash Flow Classification Effect on Cash Flow Operating Investing Financing Non-Cash Activity TRANSACTIONS Increase Decrease No Activity Activity Transactions Effect 1. Increased accounts payable 2. Decreased Inventory 3. Increased Prepaid Insurance 4. Earned a profit 5. Declared and paid a cash dividend 6. Issued Stock for cash 7. Retired long-term debt by issuing stock 8. Purchased a long-term investment with cash 9. Sold machine at a loss 10. Retired fully depreciated equipment 11. Decreased interest payable 12. Decreased dividends receivable 13. Decreased accounts receivable 14. Converted bonds to ordinary shares 15. Purchased 90-day treasury bil.
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 3EA: In which section of the statement of cash flows would each of the following transactions be...
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