2. The statement of cash flows shows the effects on cash of a company's operating, investing, and financing activities. a. True b. False 3. Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from sale of land. True b. False 4. Cash flows from financing activities, as part of the statement of cash flows, would include any payments fo- dividends. a. True b. False 5. There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: the direct method and (2) the indirect method. a. True b. False 6. A firm selling food should have higher inventory turnover rate than a firm selling office furniture, a. True b. False 7. A balance sheet shows cash, $75,000; marketable securities, $115,000; receivables, S150,000; and inventori $222,500. Current liabilities are $225,000. The current ratio is 2.5. a. True b. False 8. Current assets divided by current liabilities is referred to as working capital. a. The b. False 9. An accounts receivable turnover of 12 would indicate that on average, accounts receivables are collected 30 days. Trie b. False pyright Cangage Leaming Powered by Cognero