Increases and Decreases in Operating Cash Flows Indicate whether each of the following items would be added to Melody Corporation’s net income, deducted from net income, or have no effect in deriving cash provided by operations using the indirect method:

. An increase of $6,000 in prepaid insurance.
. A reduction of $21,000 in wages payable.
. A purchase of land for $134,000.
. A purchase of inventory for $49,000 on credit on December 31.

e. A transfer of $40,000 from the checking account to a money market account.

f. An $8,000 loss on the retirement of long-term bonds.
g. A purchase of $72,000 of treasury stock.
h. A sale of buildings for $320,000. The net book value at the time of sale is $274,000.
. A receipt of $75,000 from the maturity of a 30-day certificate of deposit.
(oe KeyNi 5 Melody Corporation includes cash and cash equivalents in its cash balance. Cash equivalents include all highly liquid investments purchased with an original maturity of 3 months or less.