Question A. Answer the following True/False questions: 1. An increase in merchandise inventory will be shown as a reduction True False in cash flow A decrease in Accounts Payable will be shown as an increase in cash flow The purchase of a deliverv truck will cause a decrease in cash from investing activities The proceeds from the issuance of common stock will be reported as an increase in cash from financing activities The proceeds from the sale of equipment formerly used in the 2. True False 3. True False 4. True False 5. True False business has a positive effect on cash flow B. Indicate which part of the Cash Flow Statement will be effected by the following scenarios: 1. Decrease in depreciation Operating Investing Financing Operating Investing Financing Operating Investing Financing Operating Investing Financing 2. Proceeds from the sale of long-term assets 3. Increase in inventory 4. Decrease in accounts pavable 5. Payment of dividends Operating Investing Financing