Which of the following statements are false? 1. A decrease in costs, all else constant, will improve a firm's profit margin and asset turnover. 2. An increase in depreciation expense will reduce net income and equity, but not total assets. 3. An increasing debt to equity ratio indicates a firm is taking on less financial risk. 4. If a firm's A/R collection period improves it cash conversion cycle will be longer. Statement one (1) is false. Statement two (2) is false. Statement three (3) is false. Statement four (4) is false. Question 2 (3 points) Which of the following statements 3re false? 1. If a firm's profit margin increases its return on equity must also increase. 2. The statement of cash flows includes operating, investing, and financing cash flows. 3. Using cash to pay down accounts payable will decrease a firm's net working capital. 4. An increase in depreciation expense will reduce net income and equity, but not total assets