2) If long-term debt this year= $5,000, Long term debt last year =$3,500 and depreciation =$1,000, capitol spending < $1,000. T/F

3) Net new borrowing from creditors is synonymous with the change in long term debt. T/F

4) If interest is $2,000 in the same year that long term debt decreased $500, the cash flow to creditors > $2,000. T/F

5) Free cash flow is synonymous with cash flow from assets. T/F

6) If EBIT =$10,000, depreciation =$5,000 and taxes =$2,000, operating cash flow < $10,000. T/F

7) If the increase in common stock =$2,000 and cash flow to owners= $9,000, dividend < $10,000. T/F

8) The payment of both interest and dividends is not a source of funds. T/F

9) Other things equal, the greater the dividends, the lower the cash flow to owners will be. T/F

10) Other things equal, The greater the increase in long-term debt, the lower the cash flow to creditors will be. T/F