Question #6 Cash Flow Statements A. Answer the following True/False questions (10 points) [Utilize BOLD TEXT to indicate the correct answer] 1. An increase in merchandise inventory will be shown as a reduction in True False cash flow 2. A decrease in Accounts Payable will be shown as an increase in cash True False flow 3. The purchase of a delivery truck will cause a decrease in cash from True False investing activities 4. The proceeds from the issuance of common stock will be reported as an True False increase in cash from financing activities 5. The proceeds from the sale of equipment formerly used in the business True False has a positive effect on cash flow