Question #6 Cash Flow Statements Answer the following True/False questions (10 points) Utilize BOLD TEXT to indicate the correct answer A. 1. An increase in merchandise inventory will be shown as a reduction in cash flow True False 2. True False A decrease in Accounts Payable will be shown as an increase in cash flow 3. The purchase of a delivery truck will cause a decrease in cash from 4. The proceeds from the issuance of common stock will be reported 5. The proceeds from the sale of equipment formerly used in the True False investing activities True False as an inc rease in cash from financing activitie s True False business has a positive effect on cash flow Indicate which part of the Cash Flow Statement will be effected by the following scenarios (10 points) B. 1. Decrease in depreciation Operating Investing Financing Operating Investing Financing Operating Investing Financing Operating Investing Financing Operating Investing Financing 2. Proceeds from the sale of long-term assets 3. Increase in inventory Decrease in accounts payable Payment of dividends 4. 5