FINANCE ACCOUNTING/ Cash Flow Statement

AC1420: Week 4 Cash Flow Statement

Page 1

Identify whether the following items increase, decrease, or have no impact on cash

flows:

Increase in raw materials

Decrease in accounts payable

Decrease in accounts receivable

Increase in finished goods

Decrease in prepaid expenses

Stock Dividend distribution to shareholders

Increase in accrued expenses

Increase in bank loans

Purchase of a machine

Provide a rationale for your selection.

Submission Requirements:

Submit your answers in a Microsoft (MS) Word file.

Font: Arial, 12 point, double-spaced

Evaluation Criteria:

Criteria Points Assigned Points Earned

Did you provide the correct

answer?

70%

Did you provide a rationale for your

decision?

30%