Required
Explain how each of the following events or series of events and any related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease, or NA) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjusting entry, record only the effects of the event.

Transcribed Image Text:

Net Income Cash Flows from Operating Activities Event Direction of No. Change Amount of Change Direction of Amount of Change Change a NA NA Decrease $6,000 Adj Decrease: $1,000 NA NA