8. Paid dividends to shareholders. 9. Sold inventory on account, at a price greater than cost. The company uses a perpetual inventory system. 10. Wrote down the cost of inventory to its net realizable value. (a) Classify each of the above transactions as an operating activity, investing activity, financing activity, or nonca: and financing activity. If it does not fit into one of these classifications, indicate that there is no effect. The firs been done for you as an example. (b) Specify if the transaction will result in a cash receipt, cash payment, or have no effect on cash. (c) Indicate if the transaction will increase, decrease, or have no effect on net income. (a) (b) (c) Classification Cash Flow Net Income 1. Operating Activity Cash Payment Decrease 9. '8 5. 4-ii 4-i. 3-ii. 2-i.