Problems L01 Classification of Cash Flow Transactions P 1. Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirect method. Cash Flow Classification Effect on Cash Flows Operating Investing Financing Noncash No Activity Activity Activity Transaction Increase Decrease Effect Transaction 1. Increased accounts payable. 2. Decreased inventory. 3. Increased prepaid insurance. 4. Earned a net income. 5. Declared and paid a cash dividend. 6. Issued stock for cash. 7. Retired long-term debt by issuing stock. (continu Activity Activity Transaction 8. Purchased a long-term investment with cash 9. Sold trading securities at again 10. Sold a machine at a loss 11. Retired a fully depreciated equipment. 12. Decreased interest payable. 13. Purchased available- for-sale securities (long-term). 14. Decreased dividends receivable 15. Decreased accounts receivable. 16. Converted bonds to common stock 17. Purchased 90-day Treasury bill