121. A growing firm that delays payments at the end of each period reports larger cash flow from operations each period than if it had not delayed making the cash payments at the end of each period....

121. A growing firm that delays payments at the end of each period reports larger cash flow from operations each period than if it had not delayed making the cash payments at the end of each period. Which of the following is true?

A. The firm is, in effect, obtaining short-term financing from its suppliers.
B. Absent contracts or other agreements that preclude delayed payments, this business practice is legal.
C. Sufficiently delayed payments might harm a firm’s reputation.
D. Sufficiently delayed payments might harm a firm’s credit rating.
E. All of the above are true.

122. If a statement of cash flow showed that a firm had a small cash loss from operating activities, a large cash outflow from investing activities, and a large cash inflow from financing activities, you would expect the firm to be at what stage of development?.

A. a new, rapidly growing firm
B. a profitable, growing firm
C. a mature, stable firm
D. a firm in early decline
E. an unprofitable, long-term declining firm

123. For each of the following activities, identify where the activity would be reported on the statement of cash flows.