Analyze each transaction listed in the table that follows and place the appropriate activity beside it to indicate the transaction’s classification and its effect on cash flows using the indirect method.
Operating Activity, Investing Activity, Financing Activity, Noncash Transaction, Increase, Decrease ,No Effect
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.
8. Purchased along-term investment with cash.
9. Sold trading securities at a gain.
10. Sold a machine at a loss.
11. Retired 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. Purchased90-day Treasury bill.