A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances:

Question:

A review of the of Peterson Inc. revealed the following changes in the account balances:
a. Decrease in long-term investment
b. Decrease in accounts receivable
c. Increase in common stock
d. Increase in long-term debt
e. Decrease in accounts payable
f. Decrease in supplies inventory
g. Increase in prepaid insurance
h. Decrease in retained earnings

Required:
Indicate whether each of the changes above produces a cash inflow, a cash outflow, or is a noncash activity.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...