Increase-decrease-impact on cash flows

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Problem 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.

Reference no: EM13765464

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