Analyze each transaction listed in the table that follows and place X's in the appropriate columns...

  

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Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirect method. Effect on Cash Flows Cash Flow Classification No Effect Noncash Operating Investing Financing Activity Transaction Transaction Increase Decrease Activity Activity 1. Increased accounts payable. 2. Decreased inventory. 3. Increased prepaid insurance. 4. Earned a net income. 5. Declared and paid a cash dividend. 6. Issued stock for cash. 7. Retired long-term debt by issuing stock. (continu Transaction A Purchased a long term investment with cash Sold trading securities at a gain. Cash Flaw Clasiication Operating investing Fancna ffed en Cash Fl Activity Activity Noncash Ativity Tramaction inceate Decresse tfect 10. Sold a machine at a lens IL Retired a fully depreciated equipment. 12. Decreased interest payable. 13. Purchased available for-sale securities (long-term). 14. Decreased dividends receivable. 15. Decreased accounts receivable. 16. Converted bonds to common stock 17. Purchased 90-day Treasury bill Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirect method. Effect on Cash Flows Cash Flow Classification No Effect Noncash Operating Investing Financing Activity Transaction Transaction Increase Decrease Activity Activity 1. Increased accounts payable. 2. Decreased inventory. 3. Increased prepaid insurance. 4. Earned a net income. 5. Declared and paid a cash dividend. 6. Issued stock for cash. 7. Retired long-term debt by issuing stock. (continu Transaction A Purchased a long term investment with cash Sold trading securities at a gain. Cash Flaw Clasiication Operating investing Fancna ffed en Cash Fl Activity Activity Noncash Ativity Tramaction inceate Decresse tfect 10. Sold a machine at a lens IL Retired a fully depreciated equipment. 12. Decreased interest payable. 13. Purchased available for-sale securities (long-term). 14. Decreased dividends receivable. 15. Decreased accounts receivable. 16. Converted bonds to common stock 17. Purchased 90-day Treasury bill

Answer rating: 100% (QA)

Table to show type and effect of given transactions Cash Flow Classification Effect on Cash Flows Tr... View the full answer