Review view Help Mailings Layout References File Home Insert Design True/False (2 Points) 1. The end goal of preparing the statement of cash flows is to show what caused the change in cash from the beginning of the period to the end of the period. 2. The operating activities section of the statement of cash flows includes all activities that affect long-term liabilities and owners' equity. 3. Factory equipment sold for cash would appear in the financing activities section of the statement of cash flows. 4. The issuance of common stock would be included in the financing activities section when preparing a statement of cash flows 5. Only information from the income statement is needed to make adjustments when preparing the operating activities section of the statement of cash flows using the indirect method. 6. Firms with significant net income always have significant cash generated from operating activities 7. When using the indirect method for the statement of cash flows, depreciation expense is added to net income to obtain cash provided by operating activities 8. The operating cash flow ratio is calculated as cash provided by operating activities divided by current liabilities 9. Free cash flow provides information regarding how much cash generated from daily operations is remaining after investing in fixed assets. 10. A capital expenditure ratio greater than 1.0 indicates the company was able to generate enough operating cash to cover investments in property, plant and equipment. Page 1 of 6 1433 words BK \/\/\/\/\/\/\/\/7 /17 ( 1 )