Effect of transactions on cash changes equation. Indicate the effect of each of the transactions in problem 1 on the cash change equation: AC = AL -I- ASE — AN$A.

where AC = change in cash, AL = change in liabilities, ASE = change in shareholders'

equity, and ANSA = change in noncash assets. If the transaction affects the income statement, indicate the effect on net income first and then indicate any adjustment made to net income to compute cash flow from operations using the indirect method. For example, the sale of land, originally costing $100, for $120 in cash affects the cash change equation as follows: (Appendix)

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JC LASE JL + ASE - ANSA Operations +$20 $0 $20-$0 Investing 120 0+ 0- -100 Operations -20 Net +$120 $0 + $20 - -$100