Background: he ability to manage cash fow s essental for businesses. Many small businesses fal because they are unable to manage the ups and downs of periodic cash fows. Listed below are ams that a corporaion gave up in order to recelive cash. For each item listed in the frst coumn, describe the eect on the elements of each financial statement using he format shown. Indicate 'NE for no effect. An example transacion has been completed for you. The ncreases to cash have already been recorded. Effect on the Results in a Change Income Statementn Owner Value Change in the Balance Sheet tem given up in order to receive cash: (YES or NO) Land that onginally cost e corporadon an amount less than the cash received. Th rarsaction was not in the primary course of ousineaS Cash (Increase) Land (Decrease) RIE (Increase hrough a Gan) YES Land that onginally cost e corporadon an amount equal to the cash received. This rarsaction was not in the primary course of ousineaS Cash (Increase) A serv ce. Cash (Increase) A promise to deliver a non-cash asset or service at a later date. Cash (Increase) A promise to repay cashtter date to a bank Cash (Increase) equity claim (e.g. a share of stock that provides the ownerinvestor wh a clam to a proportionate share of the net assets of the corporation. Cash (Increase) Required: Assuming a company uses the indirect method in the operating acivtes section of the statement of cash Hows, answer the folowing quesions: 1. Why is an increase in accounts recaivable a subtraction when adjusing from net income to operaing cash fow? 2. Why is a decrease in accounts payable a subtracton when acjusting from net income to operating cash flow