1) A decrease in merchandise inventory from one year to the next:

Select one:

a. Increases cash flow

b. None of the choices

c. Decreases cash flow

d. Does not affect cash flow

6) Dividend payments and financing activities related to debt:

Select one:

a. Are not important to financial statement readers

b. Are presented on the income statement

c. Do not affect the business' cash balance

d. Can have a significant impact on the way profit is turned into cash