Changes in the cash account. indicate the impact of the following corporate actions on cash, using the letter i for an increase, d for a decrease, or n when no change occurs. a a dividend is paid with funds received from a sale of debt. b real estate is purchased and paid for with short term debt c inventory is bought on credit. d a short term bank loan is repaid e next-years taxes are pre-paid f preferred stock is repurchased g sales are made on credit h interest on long term debt is paid i payments for previous sales are collected j the accounts payable balance is reduced k a dividend is paid. l production supplies are purchased and paid for with a short term note m utility bills are paid n cash is paid for raw materials purchased for inventory o marketable securities are purchased.

a A dividend is paid with funds received from a sale of debt. N

b Real estate is purchased and paid for with short term debt N

c Inventory is bought on credit. N

d A short term bank loan is repaid D

e Next-years taxes are pre-paid D

f Preferred stock is repurchased D

g Sales are made on credit N

h Interest on long term debt is paid D

i Payments for previous sales are collected I

j The accounts payable balance is reduced N

k A dividend is paid. D

l Production supplies are purchased and paid for with a short term note N

m Utility bills are paid D

n Cash is paid for raw materials purchased for inventory D

o Marketable securities are purchased. D

Explanation:

"Unless a company is operating on a cash basis (no credit), there will always be a difference between cash flow and net income. This is because the income statement includes non-cash items like depreciation and amortization. It also includes sales made on credit even if they haven't been paid in cash yet. One of the main goals of the cash flow statement is to reconcile the difference between net income and cash flow."

Reference: “Changes in the Cash Account.” Study.com, Study.com, 2019

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a

explanation:

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