7) A stock dividend and a cash dividend are similar in that they both reduce total stockholder's equity. However, a stock dividend does not affect the statement of cash flows whereas a cash dividend does affect the statement of cash flows. (True/False) 8) When preparing a statement of cash flows (indirect method), an increase in inventory would result in a deduction from net income. (True/False) 9) When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of land and an increase in notes receivable would both be added back as an adjustment to net income. (True/ False)