1. Which of the following changes in working capital will result in an increase in cash flows?

a. increase in account payable

b. increase in inventories

c. decrease in current liabilities

d. increase in accounts receivable

2. Which of the following will occur in a statement of cash flows as a result of paying cash dividends?

a. Cash flows from operations will increase.

b. Cash flows from investments will decrease.

c. Cash flows from the financing will decrease.

d. Cash balances will not be affected.