CTIVE Exercise 14-41 Classification of Transactions Consider the following independent activities: j. Increase in accounts receivable k. Proceeds from the sale of land I. Increase in prepaid expenses m. Retirement of a bond n. Purchase of a 60% interest in another a. Payment of a cash dividend b. Amortization of intangible asset c. Gain on disposal of equipment d. Exchange of common stock for land e. Increase in accrued wages f. Retirement of preferred stock g. Purchase of a new plant h. Depreciation expense i. Decrease in accounts payable company Chapter 14 Statement of Cash Flows Required: these transactions as operating activities, investing activities, financing activities, or Classis jnvesting not affecting cash. If an activity is an operating activity, indicate whether it nc will be added d to or deducted from net income to compute cash from operations. bhe following information for Exercises 14-42 and 14-43: e th i income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement At December 31, 20X1 Sales Cost of goods sold Beginning inventory Purchases Ending inventory $ 1,500,000 $ 400,000 800,000 (200.000) (1,000,000) (100,000) (20,000) (80.000) (40,000) s 260,000 (104.000) S 156,000 Depreciation expense Amortization of patent Wages expense Insurance expense Income before taxes Income taxes (all current) Net income Other information is as follows: a. Accounts payable decreased by $20,000 during the year. b. Accounts receivable increased by $20,000. c. All wages were paid at the beginning of the year: at the end of the year, wages payable had a balance of $12,000. d. Prepaid insurance increased by $24.000 during the year