1. 1.

Changes in the cash account [LO 18.4] Indicate the impact of the following corporate actions on cash, using the letter I for an increase, D for a decrease or N when no change occurs:

1. A dividend is paid with funds received from a sale of debt.

2. Real estate is purchased and paid for with short-term debt.

3. Inventory is bought on credit.

4. A short-term bank loan is repaid.

5. Next year’s taxes are prepaid.

6. Preferred shares are redeemed.

7. Sales are made on credit.

8. Interest on non-current debt is paid.

9. Payments for previous sales are collected.

10. The accounts payable balance is reduced.

11. A dividend is paid.

12. Production supplies are purchased and paid for with a short-term note.

13. Utility bills are paid.

14. Cash is paid for raw materials purchased for inventory.
15. Marketable securities are sold.