Explain how each of the following events or series of events and the related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease, or NA) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjusting entry, record only the effects of the event.

	Net Income		Cash Flows from Operating Activities
Event/ Adjustment	Direction of Change	Amount of Change	Direction of Change	Amount of Change
A	NA	NA	Decrease	9,000
adj	Decrease	$2,250	NA	NA

a. Paid $9,000 cash on October 1 to purchase a one-year insurance policy.

b. Purchased $2000 supplies on account. Paid $500 cash on accounts payable the Ending Balance in the Supplies account payable. The Ending Balance in the Supplies account, after adjustment was $300.

c. Provided Services for $10,000 cash.

d. Collected $2,400 in advance for services to be performed in the future. The contracts called for services to start on May 1 and to continue for one year.

e. Accrued salaries amounting to 5,600.

f. Sold land that cost $3,000 for $3,000 cash.

g. Acquired 15,000 cash from the issue of common stock.

h. Earned $12,000 of revenue on account. Collected $8,000 cash from account receivable.

i. Paid cash operating expenses of 4,500