(a) Classify each of the below transactions as an operating activity, investing activity, or financing activity.

(b) Determine the effect on cash or if this is a noncash transaction.

Unit 4 Chapter 4 Exercise Effect on Cash Cash Flows Classification (select one) Operating Investing Financing Activity Activity Activity Increase Decrease Noncash Transaction or or or or Activity 1. Net loss 2. Increase in inventory 3. Decrease in receivables 4. Increase in prepaid insurance 5. Issuance of common stock 16. Acquisition of land using notes payable 7. Purchase of land, using cash 8. Paid cash dividend 9. Payment of income taxes 10. Retirement of bonds, using cash 11. Sale of equipment for cash 5 | 5 5 5 5 55 | or or or or or or