Cash Flows Classification

Effect on Cash

Operating
Activity

Investing
Activity

Financing
Activity

Increase

Decrease

Noncash
Trans-
actions

a. Net income

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b. Paid cash dividend

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c. Increase in receivables

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d. Retirement of debt—paying cash

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e. Purchase of treasury stock

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f. Purchase of equipment

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g. Sale of equipment

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h. Decrease in inventory

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i. Acquisition of land, using common stock

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j. Retired bonds, using common stock

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k. Decrease in accounts payable

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Required Place an X in the appropriate columns for each of the situations.