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 supplies on account 2. Issued common shares 3. Received loan proceeds 4. Received a deposit from a customer 5. Payment of dividends 6. Made cash sales 7. Paid accounts payable owing to a supplier 8. Cash purchase of inventory Effect on Cash Flow Effect on Net Income