Indicate if each transaction and event is (1) a source of cash, (2) a use of cash, and/or (3) an adjustment leading to a source or use of cash (assume an indirect format). List also its placement in the statement of cash flows: operations (O), financing (F), investing (I), noncash significant

(NCS), noncash nonsignificant (NCN), or no effect (NE).

Example Category in Statement Transaction or Event Source Use Adjustment of Cash Flows Cash dividend received X O

a. Increase in accounts receivable.

b. Pay bank note.

c. Issue common stock.

d. Sell marketable securities.

e. Retire bonds.

f. Declare stock dividend.

g. Purchase equipment.

h. Convert bonds to preferred stock.

i. Pay dividend.

j. Increase in accounts payable.