Pay cash dividends to stockholders for $60,000

1. How would this impact net income? state increase or decrease and amount or NA (example: increase 10,000)

2. How would this impact the cash (bank) account? state increase or decrease and amount or NA (example: decrease 10,000)

3. What type of cash flow activity would it be on the cash flow statement? put OA, IA, FA, or NA (example: OA)

• OA= operating activity
• IA= investing activity
• FA=financing activity
• NA= not applicable