QUESTION 3 Increased earnings a. are reflected ds an increase in net cash flow. O b. do not always generate an increase in net cash flow. O c. result in a decrease in net cash flow only if dividends are paid. O d. are reflected as an increase in retained earnings. QUESTION 5 4. Which of the following statements is false when a company sells inventory costing $700 for $1,200? a. Stockholders' equity increases $500. b. Sales revenue increases $500. C. Cost of goods sold increases $700. O d. Gross profit increases $500