True or false?

a. The income statement is composed of cash flows.

b. EBITDA and operating profit represent the same accounting concept.

c. If depreciation increases, other things equal, EBITDA will decrease.

d. Even if sales are zero in a period, the cost of goods sold may be different from zero in that period.

e. If purchases are larger than COGS in a period, other things equal, net profit of that period will decrease.

f. A period’s net profit represents the amount of additional cash that a firm has obtained during that period.
g. Except for sales, all items in the income statement are negative amounts.