Problem 1- State whether each change is a source or use of cash. Hint: The main focus of this question is whether or not it is a use or source of funds. Do not go too deep on the balance sheet impact. Ex: if the questions says A/P increases: you can simply say A/P goes up, so source of cash...etc. 1. The firm reduces its inventory during off-season. 2. Competition forces the firm to give customers more time to pay for their purchases. 3. The firm doubles its quarterly dividend. 4. The firm issues $2 million of long-term debt and uses all of the proceeds to repay a short-term bank