1. Using the indirect method to work out cash flows of a business, which of the following does not increase the cash flow of the business:

1. Decrease in inventories
2. Increase in trade payables
3. Decrease in pre-payments
4. Increase in trade receivables

2. Which of the following has an effect on the cash flow of the business?

1. Depreciation of assets
2. An increase in inventories
3. An increase in the market valuation on property, plant, and equipment in the firm
4. None of the above