AOS Industries Statement of Cash Flows \ \ Operating activities \ Net Income 3.2\ Depreciation and amortization 1.4\ Cash effect of changes in \ Accounts receivable -2.1\ Accounts payable 1.1\ Inventory -0.8\ Cash from operating activities 2.8\ \ Investment activities \ Capital expenditures -2.2\ Acquisitions and other investing activity -0.4\ Cash from investing activities -2.6\ \ Financing activities \ Dividends paid -1.5\ Sale or purchase of stock 2.1\ Increase in short-term borrowing 1.4\ Increase in long-term borrowing 3.2\ Cash from financing activities 5.2\ Change in Cash and Cash Equivalents 5.4\ \ \ Consider the above statement of cash flows. Which of the following is true of AOS Industries' operating cash flows?