Question $16(1\mathrm{.}25$ points$)$

$$ Sived

Listen

Which of the foliowing describes the analyec process to determine the depreciation expense included in the forecasted statement of cash filows?

Depreciation is a mon$-$cash expense, thus it is not included in the statement of cash fows. Property, plant, and equipment from the prior year multipled by depreciabion ralo reportod in the lootnoles

None of these are correct

deprecistion experse

Cross peoperty, plant and equpment from the prior year $+$ Capital expenditures $-$ Forecasted gross property, plant, and equpenent

Question $17(1\mathrm{.}25$ points$)$

$$ Sived

Listen

All else being equal, higher financial leverage will increase a company's debt rating and increase the interest rafe it must pay

$$ True