Classification of Cash Flows}

A review of the statement of financial position of Petarch Company Ltd. revealed the following changes in the account balances:

a. Increase in long-term investment

b. Increase in accounts receivable

c. Increase in common shares

d. Increase in long-term debt

e. Decrease in accounts payable

f. Decrease in supplies inventory g. Increase in prepaid insurance Required:
Classify each change in the statement of financial position account as a cash flow from operating activities (indirect method), a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity.
\section*{Cornerstone Exercise