A review of the balance sheet of Mathews Company revealed the following changes in the account balances a Increase in accounts receivable b Increase in retained earnings c Decrease in salaries payable d Increase in common stock e Decrease in inventory f Increase in accounts payable g Decrease in lo...

1 a Cash outflow b Cash inflow c Cash outflow d C ...

A review of the balance sheet of Mathews Company revealed the following changes in the account balances:

Question:

A review of the of Mathews Company revealed the following changes in the account balances:
a. Increase in Increase in retained earnings
c. Decrease in salaries payable
d. Increase in Decrease in inventory
f. Increase in Decrease in long-term debt
h. Increase in property, plant, and equipment

Required:
1. For each of the above items, indicate whether it produces a cash inflow or a cash outflow.
2. Classify each change as a cash flow from operating activities (indirect method), a cash flow from investing activities, or a cash flow from financing activities.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...