1. Cash flows and profits are always consistent with each other.

   • True
   • False

2. We want operating cash flows to be __________ and always __________ every year.

   • Positive and increasing
   • Positive and decreasing
   • Negative and increasing
   • Negative and decreasing

3. Starbucks statement of cash flows can be viewed as healthy.

   • False
   • True

4. Which of the following is usually viewed as a good sign from the statement of cash flows?

   • Negative net earnings
   • Large positive cash flows from selling property and equipment
   • Positive net operating cash flows
   • Positive cash flows from long-term debts

5. Which of the following is a section in a statement of cash flows?

   • operating
   • investing
   • financing
   • All of the above.

6. Total operating cash flows + total investing cash flows + total financing cash flows = _______________.

   • income
   • annual profits
   • total change in cash
   • cash flow

7. Which part of the statement of cash flows can use the indirect method of presentation?

   • Financing
   • operating
   • financing
   • All of the above