Listed below are events that occurred during the current year. For each of the events shown below, indicate if it will increase, decrease, or have no effect on each of the categories of cash flows listed. Operating Investing Cash Flows Financing Cash Flows Cash Flows Had difficulty in collecting accounts receivable Increase Increased the level of insurance prepayments Decrease No Effect Reduced capital expenditures Lowered inventory levels Purchased a warehouse by issuing shares Paid down accounts payable faster

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.17E
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Listed below are events that occurred during the current year. For each of the events shown below, indicate if it will increase,
decrease, or have no effect on each of the categories of cash flows listed.
Operating
Cash Flows
Investing Cash
Flows
Financing
Cash Flows
Had difficulty in collecting accounts receivable
Increase
Increased the level of insurance prepayments
Decrease
No Effect
Reduced capital expenditures
Lowered inventory levels
Purchased a warehouse by issuing shares
Paid down accounts payable faster
Renegotiated a bank loan to reduce the interest rate and to extend
the termin order to reduce instalment loan payments each month
Transcribed Image Text:Listed below are events that occurred during the current year. For each of the events shown below, indicate if it will increase, decrease, or have no effect on each of the categories of cash flows listed. Operating Cash Flows Investing Cash Flows Financing Cash Flows Had difficulty in collecting accounts receivable Increase Increased the level of insurance prepayments Decrease No Effect Reduced capital expenditures Lowered inventory levels Purchased a warehouse by issuing shares Paid down accounts payable faster Renegotiated a bank loan to reduce the interest rate and to extend the termin order to reduce instalment loan payments each month
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