Classifying inflows and outflows of cash Classify each of the following items as an inflow (I) or an outflow (O) of cash, or neither (N). Item Change ($) Item Change ($) Cash Balance negative 300 Accounts receivable plus 1 comma 700 Accounts payable negative 1 comma 200 Net profits plus 900 Notes payable plus 1 comma 500 Depreciation plus 1 comma 100 Long-term debt plus 1 comma 000 Repurchase of stock plus 900 Inventory plus 200 Cash dividends plus 800 Fixed assets plus 400 Sale of stock plus 1 comma 000

The item has been classified or arranged as either inflow and outflow as follows;

Where as :O represent Outflow

I represent Inflow

Items $Change

Cash - 300 O

Accounts receivable 1,700 I

Accounts Payable -1,200 O

Net profits 900 I

Notes payable 1,500 I

Depreciation 1,100 I

Long-term debt 1,000 O

Repurchase of stock 900 O

Inventory 200 O

Cash dividends 800 O

Fixed assets 400 O

Sale of Stock 1,000 I

Explanation:

Where as :O represent Outflow

I represent Inflow

Items $Change

Cash - 300 O

Accounts receivable 1,700 I

Accounts Payable -1,200 O

Net profits 900 I

Notes payable 1,500 I

Depreciation 1,100 I

Long-term debt 1,000 O

Repurchase of stock 900 O

Inventory 200 O

Cash dividends 800 O

Fixed assets 400 O

Sale of Stock 1,000 I

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