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11. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease in accounts payable Decrease in prepaid expenses Increase in Inventory Dividend payment Increase in accrued expenses 2-11. Solution: Increase in accounts receivable Increase in notes payable Depreciation expense – Increase in investments Decrease in accounts payable Decrease in prepaid expense Increase in inventory Dividend payment Increase in accrued expenses
10. Classify the following balance sheet items as current or noncurrent: Retained earnings Accounts payable Prepaid expenses Plant and equipment Inventory Common stock Bonds payable Accrued wages payable Accounts receivable Capital in excess of par Preferred stock Marketable securities 2-10. Solution: Retained earnings Accounts payable Prepaid expense Plant and equipment Inventory Common stock Bonds payable Accrued wages payable Accounts receivable Capital in excess of par Preferred stock Marketable securities