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1. Which of these are sources of cash?
Short-term loan and repurchase of company stock.
Decrease in Accounts Receivable and increase in Accounts Payable.
Dividends to shareholders and increase in Inventory.
2. Increasing inventory increases assets on the Balance Sheet. What is the impact of increasing inventory on the Cash Flow Statement?
Increased inventory increased assets which increased value and therefore increases net cash.
Inventory is not recorded on the Cash Flow Statement.
Increased inventory is a use of cash and therefore lowers the amount of net cash.
3. If a company uses Financing Activities to increase available cash, what accounts would likely be affected on the Cash Flow Statement?
Sale of investments, sale of inventory, or sale of stock.
Decreased depreciation charges, increased financing receivables, and sale of inventory.
Increased borrowings, increased bonds or sale of stock.
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