STATEMENT OF CASH FLOWS 1) True and false. (5 PTS.) Indicate whether the following statements are True (T) or False (F): T F1.Cash lows is a tenm that describes both cash receipts and cash payments. T F 2. Transactions for isuing bonds are shown as investing activities on the cash flows T F3. Transactions involving sales and the cost of goods sold are incuded under operating activities F 4. Since interest and dividend receipts are not related to operating activities, they are as part of the net cash flow from operating activities on the statement of cash not shown flows T F 5. If the ending balance of A/R is less than the beginning balance, the amount of cash received during the period related to sales activities was less than the amourt of reported net sales 2) Multiple Choice. (15 Points) For the questions below, indicate the correct answer from the choices 1. Which of the following does not decrease the cash flow from operating activities? a. The payment of inventory and supplies b- The payment of equipment (to manufacture products) c. The payment of interest d. Al three decrease cash from operating activities 2. Which of the following is a financing activity? a. Purchasing production equipment b. Paying a cash dividend c. Receiving interest income d. Selling an investment in marketable securities