Analyzing Statement of Financial Position Accounts}

A review of the statement of financial position of Dixon Company revealed the following changes in the account balances:

a. Increase in retained earnings

b. Increase in equipment

c. Increase in interest receivable

d. Decrease in bonds payable

e. Increase in unearned rent revenue

f. Decrease in prepaid insurance g. Decrease in long-term investment h. Increase in accounts payable

\section*{Required:}

1. Classify each change in the statement of financial position account as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity.

2. Indicate whether each of the changes in the statement of financial position accounts produces an increase in cash, produces a decrease in cash, or is a noncash activity.

\section*{Brief Exercise