On the Statement of Cash Flows, an increase in short$-$term notes payable $($STNP$)$ over the year is a:

a$.$ source of funds; find it in the section titled CF operating activities

b$.$ use of funds; find it in the section titled CF operating activities

c$.$ source of funds; find it in the section titled CF investing activities

d$.$ use of funds; find it in the section titled CF investing activities

e$.$ source of funds; find it in the section titled CF financing activities

f$.$ use of funds; find it in the section titled CF financing activities

When forecasting next year's balance for inventory $($INV$)$ under the AFN approach, you would:

a$.$ grow the account as the same rate as sales are expected to grow

b$.$ keep the account the same amount as it was last year

$($c$.)$ forecast the account to equal the prior year's amount plus additions to retained earnings $($ADDRE$)$

d$.$ base your forecast on your full capacity sales calculation

Which statement is TRUE?

a$.$ Gross profit margin $($GPM$)$ will always be less than operating profit margin $($OPM$).$

b$.$ You should strive to maximize the fixed asset turnover ratio $($FAT$).$

c$.$ The TIE ratio is a liquidity ratio.

d$.$ The Statement of Cash Flows removes GAAP accounting rules and converts the balance sheet to a "stock" financial statement, which is better than a "flow" statement.

e$.$ IF EM is increasing over time, that means the firm is using less debt than they have in the past.