Identify each of the following as increasing (+) or decreasing ( ) cash flows fr
ID: 2692537 • Letter: I
Question
Identify each of the following as increasing (+) or decreasing ( ) cash flows from operating activities (0), investment activities (I), or financing activities (F). (EXAMPLE: the sale of plant and equipment would increase cash flows from investing activities, and the correct answer would be +I). 1. Increase in accounts payable 2. Decrease in inventory 3. Net income from operations 4. Payment of dividends 5. Sale of preferred stock 6. Increase in accrued expenses 7. Purchase of new equipment 8. Decrease in depreciation expense 9. Increase in accounts receivable 10. Decrease in notes payable 11. Increase in net worth 12. Increase in long-term liabilities 13. Increase in investments 14. Decrease in marketable securities 15. Repurchase of common shares outstanding 16. Increase in prepaid expense 17. Decrease in income taxes payable 18. Retirement of long-term bonds payable 19. Sale of new common stock 20. Decrease in accrued wagesExplanation / Answer
1. Increase in accounts payable +O 2. Decrease in inventory +O 3. Net income from operations +O 4. Payment of dividends -F 5. Sale of preferred stock +F 6. Increase in accrued expenses +O 7. Purchase of new equipment -I 8. Decrease in depreciation expense -O 9. Increase in accounts receivable -O 10. Decrease in notes payable -O 11. Increase in net worth +F 12. Increase in long-term liabilities +F 13. Increase in investments -I 14. Decrease in marketable securities +I 15. Repurchase of common shares outstanding -F 16. Increase in prepaid expense -O 17. Decrease in income taxes payable +O 18. Retirement of long-term bonds payable -F 19. Sale of new common stock +F 20. Decrease in accrued wages -O