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For each of the following items indicate whether it would be classified as either an (0) operating activity, an (1) investing activity, a (F) financing

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For each of the following items indicate whether it would be classified as either an (0) operating activity, an (1) investing activity, a (F) financing activity, or a significant (N) noncash financing and investing activity. 1 2 3 4 5 Depreciation Expense. Proceeds from the sale of equipment used in the business Declaration and payment of dividends on company's stock. An increase in the balance in a retailer's Merchandise Inventory. An increase in the balance in Accounts Payable. Retirement of long-term Bonds Payable. Purchase of Treasury Stock (company's own stock). The purchase of a new delivery truck to be used in the business. The proceeds from issuing additional Common Stock. A decrease in the current asset account Prepaid Insurance. 6 7 8 9 10 For items 11 - 20 indicate whether they will have a positive or negative EFFECT ON CASH. A positive effect could also be thought of as a source of cash, an increase in cash, or a positive amount on the cash flow statement. A negative effect could also be thought of as a use of cash, a decrease in cash, or a negative amount on the cash flow statement. 11 12 13 14 15 An increase in the balance of Prepaid Insurance. A decrease in Supplies on hand. The proceeds from the sale of equipment formerly used in the business. An increase in the current liability Income Taxes Payable. A decrease in Accounts Payable. An increase in Accounts Receivable. An increase in the current liability Warranty Liability. Dividends declared and paid. Proceeds from the issuance of Preferred Stock. An increase in the long-term asset Investment in Another Company. 16 17 18 19 20

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