True/False (please give the reason why the statement is true or false)

Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets:

2011 2010

common stock $2000 $1000

Retained earnings 2000 2340

Total common equity $4000 $3340

The firm has never paied a dividened to its common stockholders in 2010 and 2011.

1. The firm issued common stock in 2011.

2. The firm had negative net income in 2011.

3. An increase in accounts receivable represents an increase in net cash provided by opreating activities so it is added to net income in the opreating activites section.