Question

Please answer parts A through D. Thank you!

Answer 1

A.Increase in common stock is an increase in financing cash flow

Financing cash flow:

Cash Flow from Financing Activities is the net amount of funding a company generates in a given time period used to finance its business. Finance activities include the issuance and repayment of equity

Issue of equity shares is an increase of cash flow araising to the business .

B.An Increase in property , plant and Equipment is associated with a decrease in investing cash flow

Cash flow from investing activities includes any inflows or outflows of cash from a company's long-term investments. ... Cash flow from investing activities involves long-term uses of cash. The purchase or sale of a fixed asset like property, plant, or equipment would be an investing activity

Purchase of Property leads to decrease in cash flow and is a investing activity.

C.Increase in inventory is associated with a decrease in Operating cash flow

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers

Working capital changes also have an impact on operating cash flow of an enterprise

An increase in inventory is might be a purchase of inventory which is a cash outflow hence it is a decrease in operating cash flow

D.Increase in Sales is associated with the an increase in operating cash flows

Sales is a ordinary activity which arises due to operations of enterprise

Increase in sale is a cash inflow to an enterprise