1. Indicate whether each of the following items will be reported on the statement of financial position (SFP), statement of income (SI), both the statement of financial position and statement of income (B), or neither statement (N)for example, it might appear only on the statement of cash flows.

Temporary investments

a. Temporary investments

b. Repurchase of shares issued 10 years ago

c. Goodwill

d. Rent revenue

e. Goods held for resale to customers

f. Retained earnings

g. Interest expense

h. Increase in accounts receivable

i. Depreciation expense

j. Gain on sale of equipment

2. The board of directors of a public company is having its monthly meeting. One of the items on the agenda is the possible distribution of a cash dividend to shareholders. If the board decides to issue a cash dividend, the decision obliges the company to issue cash to shareholders based on the number of shares each shareholder owns. Before making its decision, what information about the company should the board consider?