Drexon Corp., which follows U$.$S$.$ GAAP, uses the direct method to report its cash flows. The CFO is

assessing the impact on cash flows of $12$ events during the fiscal year. Using the table below, associate each

event with the correct cash flow category $($under the direct method$)$ and note whether it increases cash,

decreases cash, or has no impact on cash.

al year. Using the table below, associate each

od$)$ and note whether it increases cash,

Select an option below

Cash Catego

CFO

CFI

CFF

Non$-$cash event

$40,000$ new shares of stock are issued near the close of

the fiscal year.

$11$ Drexon purchases $60\%$ of a subsidiary company.

Accounts receivable decreases from $$620,000$ to

$$610,000.$

CANCEL

Dividends of $$12,000$ are paid on Drexon company

stock.