Question 1 Points: 25 Question 4 Question 4 (a) The following are the common transactions and events that occur within a firm. It may involve cash inflows or cash outflows, or no cash movement. Transactions or Events: (1) Decrease in inventory (2) Paid current portion of long-term debt (3) Retire common stock (4) Purchase marketable securities (5) Issue bonds (6) Declare stock dividend (7) Sell equipment for cash (8) Convert bonds to preferred stock Required: Justify if each transaction and event is (1) a source of cash, (2) a use of cash, or (3) no cash movement involved. (17 marks) (11) Discuss whether depreciation involves cash movement. (3 marks) (1) (b) Compare between revenues and gains. (5 marks) [Total: 25 marks]