1. The following item would be classified as an financing activity on the statement of cash flows: * A) Payments for inventory. B) Acquisitions of equipment. C) Proceeds from borrowing. D) Purchasing inventory E) None of the above. 2. Common-size income statement prepared when: * A) Each income statement item is expressed as a percentage of total assets. B) Each income statement item is expressed as a percentage of net sales. C) Each income statement item is expressed as a percentage of net income. D) Each income statement item is O expressed as a percentage of cash flow