An increase in inventory constitutes a use of cash

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True or False

A) An increase in inventory constitutes a use of cash.

B) Ceteris paribus, an increase in accounts receivable would reduce CFFA.

C) An increase in accounts receivable constitutes a use of cash while a decrease in accounts payable constitutes a source of cash.

D) If CFFA is 100, CFTC is 60 and dividends paid is? 20, then the firm repurchased stock in the amount of 20.

E) If a firm’s CFFA or “free cash flow” is negative, this means that the firm will be unable to pay any cash dividends.

F) Equity on the balance sheet refers to what the owners receive after liabilities have been satisfied.

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