Effect of product versus general, selling, and administrative cost on financial statements Required Fletcher Corporation recognized the annual expiration of insurance on December 31, 2008. Using the following horizontal financial statements model shown, indicate how this event affected the company’s financial statements under the following two assumptions: (1) the insurance was for office equipment or (2) the insurance was for manufacturing equipment. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. In the Cash Flow column, indicate whether the cash flow is associated with operating activities (OA), investing activities (IA), or financing activities (FA).

Assets Equity Event Prepaid Com. Ret.

No. Cash Insurance Inventory Stk. Ear. Rev.  Exp. Net Inc. Cash Flow