1.) Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income.

a.) Decrease in accounts payable.

b.) Depreciation expense.

c.) Decrease in inventory.

d.) Gain on sale of assets.

e.) Increase in accounts receivable.

f.) Increase in deferred tax liabilities.

g.) Decrease accrued liabilities.

h.) Increase in prepaid expenses.

i.) Increase in deferred revenue.

j.) Decrease in interest receivable.

2.) Indicate whether each of the following events would cause an inflow or an outflow of cash and whether it would affect the investing (I) or financing (F) activities on the statement of cash flows.

a.) Repayments of long-term debt.

b.) Sales of marketable securities.

c.) Repurchase of companys common stock.

d.) Sales of common stock to investors.

e.) Purchase of equipment.

f.) Payment of dividends.

g.) Purchase of marketable securities.

h.) Borrowing from bank.

i.) Sale of building.

j.) Acquisition of company.