State whether each of the following statements is true or false.

(a) Operating activities reflect total cash inflows. True/False

(b) Depreciation decreases the cash position. True/False

(c) Tax paid decreases the tax position. True/False

(d) A proposed dividend increases the cash position. True/False

(e) A decrease in debtors increases the cash position. True/False

(f) An increase in creditors decreases the cash position. True/False We can now move on to examine the second note required by FRS1. This note reconciles the net cash flow to movement in net debt.