Problem: Decide whether each is an operating, financing or investing activity or a non cash transaction. Tell whether the effect on cash flow is an increase or decrease?
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 a long-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. Purchased 90-day Treasury bill.