Develop brief answers to each of the following questions: 1. If a company has positive earnings, can

Question:

Develop brief answers to each of the following questions:

1. If a company has positive earnings, can cash flows from operating activities ever be negative?

2. Which adjustments to net income in the operating activities section of the statement of cash flows are directly related to cash flows in other sections?

3. In computing free cash flow, what is an argument for treating the purchases of treasury stock like dividend payments?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...