Marvin Pearson is the managerial accountant for Highway Subs, a chain of sandwich shops located at major Interstate highway exits. He is about to begin work on a statement of cash flows for his organization and needs a quick refresher. Help him out by labeling each of the following items as a Source or Use of funds. Place an “S”

before the statements identifying a source of funds, and a “U” for those statements identifying a use of funds.

aD EES | A Increase in cash Decrease in marketable securities Decrease in net receivables Increase in inventories Increase in property and equipment Decrease in common stock Decrease:in cash Increase in retained earnings Increase in notes payable Decrease in inventories Increase in common stock Decrease in accounts payable Decrease in long-term debt Increase in marketable securities Decrease in property and equipment Increase in long-term debt Decrease in notes payable Increase in accounts. payable Increase in net receivables Increase in depreciation a

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