Which of the following factors does NOT affect cash flows?

The correct answer highlights that the dividend payout ratio does not directly influence cash flows. The dividend payout ratio indicates the portion of earnings a company chooses to distribute to shareholders in the form of dividends. While it affects how much cash is returned to shareholders, it does not alter the overall cash flows generated from the company's operational activities.

In contrast, economic growth can significantly affect cash flows, as it usually leads to increased consumer spending, higher sales, and thus greater cash inflows for a company. The risk-free interest rate also plays a crucial role; it impacts the cost of borrowing and can influence investment decisions, which in turn affect cash flows from financing activities. Management abilities are critical as well, since effective or ineffective management can greatly impact operational efficiency and profitability, impacting cash inflows and outflows.

Understanding these relationships helps clarify how different factors can influence a company's cash flows in various contexts.