Refer to the information for Peterson Inc. above. A review of

Refer to the information for Peterson Inc. above.
A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances:
a. Increase in long-term investment
b. Increase 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:
Classify each change in the balance sheet account as a cash flow from operating activities (indirect method), a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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...

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