Problem 5 (18%) A. Provide the most likely explanation for how 1. excess days could increase by 4 even when days' sales in inventory decreased by 3. 2. a firm that just became profitable after years of losses could nevertheless, be ranked in the top 10 among Fortune 500 firms for its Return on Stockholders' Equity. 3. a firm paid all bills due early in the new year despite having a $0 cash balance on Jan. 1. B. Fearing the U.S. would soon greatly increase the tax on dividends received, an actual firm distributed to its shareholders $3.6 billion of cash dividends in 2012, nine times what it had distributed in the prior year. Nevertheless, the net cash effect of all financing activities included on the firm's 2012 statement of cash flows was very close to $0. What most likely offset the huge dividend such that the net cash effect from financing activities was near $0