1.) By examining relationships between items in the Statement of Cash Flows, investors and creditors can do all of the following except

a.) determine the entity's ability to earn future income.

b.) determine reasons for the difference between net income and net cash provided by operating activities.

c.) cash investing and financing transactions during the period.

d.) make predictions of the amounts, timing, and uncertainty of future cash flows.

2.) In converting net income to net cash provided (used) by operating activities, under the indirect method

a.) decreases in accounts receivable and increases in prepaid expenses are added.

b.) decreases in inventory and increases in accrued liabilities are added.

c.) decreases in accounts payable and decreases in inventory are deducted.

d.) increases in accounts receivable and increases in accrued liabilities are deducted.