Question: Indicate the effect (increase, decrease, or no effect) each of the following transactions would have on a companys cash flow and net income: Transaction 1.

Indicate the effect (increase, decrease, or no effect) each of the following transactions would have on a company’s cash flow and net income: Transaction 1. Purchased inventory on account 2. Sold at a gain equipment

Transaction 1. Purchased inventory on account 2. Sold at a gain equipment that the company was finished using 3. Repayment of loan principal 4. Declaration of dividends 5. Accrued interest owing on loan 6. Made sales on account 7. Collection of an account receivable from a customer 8. Cash purchase of equipment Effect on Cash Flow Effect on Net Income

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