Identify each of the following as increasing (+) or decreasing (-) cash flows from operating activities (O), investment activities (I), or financing activities (F). (EXAMPLE: the sale of plant and equipment would increase cash flows from investing activities, and the correct answer would be +I).
_______ 1. Increase in accounts payable
_______ 2. Decrease in inventory
_______ 3. Net income from operations
_______ 4. Payment of dividends
_______ 5. Sale of preferred stock
_______ 6. Increase in accrued expenses
_______ 7. Purchase of new equipment
_______ 8. Decrease in amortization expense
_______ 9. Increase in accounts receivable
_______ 10. Decrease in notes payable
_______ 11. Increase in net worth
_______ 12. Increase in long-term liabilities
_______ 13. Increase in investments
_______ 14. Decrease in marketable securities
_______ 15. Reduction in retained earnings
_______ 16. Repurchase of common shares outstanding
_______ 17. Increase in prepaid expense
_______ 18. Decrease in income taxes payable
_______ 19. Retirement of long-term bonds payable
_______ 20. Sale of new common stock
Correct Answer:
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