COURSE: FINANCIAL INFORMATION FOR DECISION MAKING Indicate how different items shown in table are affected, increase (+), decrease (-), depend (?) or are not affected (o), when following transactions occur in a given retail company (commercial sector). Analyze each transaction independently of others. Indicate amount by which each item increases or decreases.

1. Amortization of intangible assets is recognized for month for $500,000. 2. Shareholders' meeting approves distribution of a total of $2,000 ,000 in dividends, which have not yet been paid. 3. On January 15, 2020 company paid 8 months in advance of insurance covering claims in its sales premises for a total of $8,000,000, whose policy starts on same day (Consider both effect as of January 15 and 31, 2020). 4. It sells products to customers for a total value of $800,000 which have a purchase cost of $330,000. Form of payment is 50% on credit and other half in cash. 5. It borrows $4,000,000 from bank and uses this amount to purchase a plot of land. New sales premises of company will be built on this land (only consider effect at time of purchase of land). 6. On January 2, 2020 it placed bonds in market for a total value of $100,000,000. Term to maturity is in 15 more years. This involves monthly payment of interest on last day of each month at a rate of 1% per month. Repayment of principal is at maturity (only consider effect as of January 2, 2020). 7. On January 31, 2020, interest accrues on bond for the month. These are paid in February 2020. (see point 6). 8. On January 2, 2020 company sells a piece of land for cash at $500,000 whose book value at that date is $480,000.

Note: Explain in detail movements in each section of financial statements.

N	Net Operating Cash Flow	Net Investment Cash Flow	Net Cash Flow from Financing	Operating Income (Loss)	Net Income (Loss)	Total Equity	Total Assets	Total Liabilites
1
2
3
4
5
6
7
8