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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Activity
Non-Cash
Transactions
Increase Decrease No
Effect
TRANSACTIONS
Activity
Activity
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
bill.
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