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Effects on Cash Flow

Explain how the following terms affect cash flow:

0. Stock dividends declared
1. Amortization of bond discount
2. Building and land purchased by issuing common stock
3. Decrease in prepaid expenses
4. Depreciation expense on equipment
5. Decrease in dividends payable
6. Common stock issued for cash
7. Decrease in inventories
8. Decrease in accounts payable
9. Gain on sale of land
10. Amortization expense on patents
11. Gain on sale of long-term investments
12. Increase in accounts receivable

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Solution Summary

The solution discusses how a number of terms and concepts affect cash flow.