Select all statements that are true.

Question 1 options:

	The Balance sheet summarizes the activity of the firm over the reporting period
	If you are interested in knowing how much cash the firm has, you should look at the statement of cash flows
	If you are interested in knowing how much cash the firm has, you should look at the balance sheet
	If you are interested to know by how much the cash position of a firm has changed, you should look at the income statement
	If you are interested to know by how much the cash position of a firm has changed, you should look at the statement of cash flows
	The income statement summarizes the activity of the firm over the reporting period

Select all the true statements

Question 2 options:

	A positive Net Working Capital indicates that the firm has more Current Assets than Current Liabilities
	If a firm buys $1000 worth of inventory using cash, its Net Working Capital would increase
	If a firm buys $1000 worth of inventory using accounts payable, its Net Working Capital would increase
	A firm's Current Assets have increased every year for the past five years. At this moment they are five times the industry average. This is not necessarily a good thing.

Select all true statements.

Question 3 options:

	Depreciation is a non-cash expense that could be used to impact taxable income
	Operating income represents the firm's profit after taking into consideration depreciation and financing costs
	Interest expense reduces a firm's taxable income
	The net income of a firm represents the cash it generated over a period of time

Select all true statements

Question 4 options:

	Issuing $1,000 in new common stock would result in an increase in "cash from financing activities"
	Buying $1,000 in another firm's common stock would result in an increase in "cash from financing activities"
	The statement of cash flows ignores depreciation because is a non-cash expense
	Issuing $1,000 in bonds would result in an increase in "cash from financing activities"
	A positive Net Income increases the cash flow from operating expenses

Select all true statements

Question 5 options:

	A firm's PE ratio indicates the price of common stock scaled to $1 in Book Value
	Firm A has a TIE ratio of 2.7x which has steadily declined over time; Firm B has a TIE ratio of 6.2x which has remained stable over time; If you could lend money to only one firm, you should lend to B
	A firm has an operating margin of 15%. This means that for every $1 in operating income, the firm generates $0.15 in sales
	A firm's PE ratio indicates the price of common stock scaled to $1 in EPS