ANALYZING THE ACCOUNTS A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances:

a. Decrease in long-term investment

b. Decrease in accounts receivable

c. Increase in common stock

d. Increase in long-term debt

e. Decrease in accounts payable

f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings Required:
Indicate whether each of the changes above produces a cash inflow, a cash outflow, or is a noncash activity.
Cornerstone Exercise