A$.$ Answer the following True$/$False questions $(10$ points$)$:

$[$Utilize BOLD TEXT to indicate the correct answer$]$

$1.$ An increase in merchandise inventory will reduce cash flow True False

$2.$ The purchase of a delivery truck will cause a decrease in cash from

investing activities

True False

$3.$ A decrease in Accounts Payable will increase cash flow True False

$4.$ The proceeds from the issuance of common stock will be reported

as an increase in cash from financing activities

True False

$5.$ The proceeds from the sale of equipment formerly used in the

business has a positive effect on cash flow

True False

B$.$ Indicate which part of the Cash Flow Statement will be affected by the

following scenarios $(10$ points$)$:

$1.$ Decrease in depreciation Operating Investing Financing

$2.$ Increase in inventory Operating Investing Financing

$3.$ Decrease in accounts payable Operating Investing Financing

$4.$ Payment of dividends Operating Investing Financing

$5.$ Proceeds from the sale of long$-$term assets Operating Investing Financing