Required: For each of the following items indicate whether it increases, decreases, or has no effect (N/E) on cash flow:
|
Cash flow |
||||
| Inc. | Dec. | N/E | ||
|
____ |
____ |
____ |
1. |
Earning net income for the year |
|
____ |
____ |
____ |
2. |
Redemption of preferred shares at face value. |
|
____ |
____ |
____ |
3. |
Purchase of inventory |
|
____ |
____ |
____ |
4. |
Issuing common shares for equipment |
|
____ |
____ |
____ |
5. |
Assuming non-current debt. |
|
____ |
____ |
____ |
6. |
Declaring a cash dividend |
|
____ |
____ |
____ |
7. |
Collection of an account receivable |
|
____ |
____ |
____ |
8. |
Payment of an account payable |
|
____ |
____ |
____ |
9. |
Purchase of land for cash |
|
____ |
____ |
____ |
10. |
Issuing common shares for cash |
|
____ |
____ |
____ |
11. |
Reclassifying non-current liabilities as current liabilities for the amount to be paid in cash next year |
|
____ |
____ |
____ |
12. |
Payment of a cash dividend declared last year |
|
____ |
____ |
____ |
13. |
Decrease in market value of short-term investments |
|
____ |
____ |
____ |
14. |
Calculated amount owing for income taxes. |
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